You might think, being a real estate agent is fun. You are right, but part of being a successful realtor is more than just fun. It is building trust with your clients, guiding them in their journey, and answering all their questions.
Did you know that the number of members of the NAR (National Association of Realtors) has steadily reached 1.46 million in 2020, which is an all-time high?
This figure simply shows that the competition is brutal in the real estate sector. You need to be the best in order to survive and stand out from the competition. Below, you will find the most frequently asked real estate questions by home buyers and sellers. Use this guide to confidently answer your clients’ queries.
Real Estate Questions by Home Sellers
How to Prepare a House before selling it?
When you’re in the real estate business, your first impression matters a lot, and the first rule of selling a house is making it presentable. Anyone touring it virtually will be looking for ways to negotiate down on the price. It is your responsibility to help your clients ensure that the HVAC, plumbing, and electrical system all work appropriately. Tell them to make repairs and give the entire house a thorough cleaning. And don’t forget about the paint. From floors to ceilings, bathrooms to kitchens, everything should look good and uncluttered.
How Long Does it Take to Sell a House?
Once the house is prepared and is on the market, there are plenty of factors that can depend on how long it will take to sell the home. However, once the home goes under contract, the important part is that it can take 4-8 weeks from contract date to get to the closing table. Due diligence can be very extensive, plan accordingly.
When is the Right Time to Sell a House?
Homes tend to sell faster during peak seasons. According to NAR, May, June, July, and August account for 40% of total annual sales. Overall, selling a home is pretty good through spring, fall, and summer. Whereas, home sales decrease when the winter season hits. January is the worst month of the year to sell a home because of low market activity.
What does a Home Inspection Mean?
Several homebuyers feel uncomfortable purchasing a house without a pre-listing inspection. In fact, some prefer hiring an inspector for this job. That said, a pre-sale home inspection is always helpful when you want your client to get the best price for their home. Also, it will help them take care of the major issues before listing, which could increase the value of the property.
What Makes the Assessed Value Different From the Market Value?
The assessed value of a property is determined yearly for taxation purposes. Whereas, the market value is determined by a willing buyer and seller. When there is a difference between these two values, it could be an end result of a number of factors. For instance, low inventory can make the market value higher than the assessed value. Make sure your clients understand the whole concept.
Real Estate Questions from Home Buyers
What is the Initial Step of Home Buying?
Generally speaking, getting pre-approved for a mortgage is the beginning of the home buying journey. It will help the borrower estimate the money required for the down payment and closing costs. The buyers should get a pre-approval letter from a lender first and then shortlist the most budget-friendly properties. Make sure your clients do not make the mistake of obtaining a mortgage pre-approval after finding the deal.
How Much Time does it take to buy a House?
From start to finish, online searching to escrow closing, home buying usually takes about ten to twelve weeks. Once a home is finalized and an offer is accepted, the average escrow time is around four to six weeks, under normal market conditions. However, if the buyer is well-prepared and ready to pay cash, the home buying process could become faster than that.
What is the Role of Earnest Money?
Earnest money is quite similar to a deposit. It demonstrates that the home buying offer is legitimate. Also, it gives the homebuyer extra time for conducting a title search, property appraisal, inspection, and financing. As a real estate agent, it’s your prime duty to ask your client for the earnest money in the form of a check or cash. This amount could be somewhere between 1 and 2% of the actual selling price.
Are there Any Additional Costs?
Yes, there can be additional costs depending on the situation. These expenses may include moving expenses, renovations, repairs, condominium fees, utility fees, internet charges, gas, food, etc. Also, if your client gets cold feet about a home, it is totally fine. Sometimes, they have a second thought in their head. However, let them know that they will have to forfeit the earnest money in that case.
Is it Important to do a Final Walk-Through?
A final walk-through is not necessarily important, but highly recommended. It helps homebuyers ensure that nothing has changed since their previous visit. Additionally, if there were any repairs to be made during the inspection, then a follow-up inspection would be great to make sure all repairs are done according to the agreement.
Now that you’ve gotten the most common real estate questions and answers, you should feel more prepared to face your clients. Being armed with the right knowledge would help you build trust, create winning offers, make negotiations, and most importantly, satisfy your valuable clients.