Real Estate FAQs

  • How do I start the home buying process?

    The first step is to get pre- approved for a mortgage and consult with a real estate agent to discuss your home needs, wants, and dreams!

  • Do I need a real estate agent in order to buy or sell a home?

    While it is not legally required, working with an agent has many valuable perks. Real Estate Agents provide expert guidance, market knowledge, and negotiation skills to help get you the best deal possible!

  • What costs should I expect when buying a home?

    When buying a home, buyers should budget for closing costs, inspection fees, appraisal fees, and moving expenses and the down payment.

  • What is the process for selling a property?

    Selling your property starts with an evaluation and market analysis to determine its value. After listing the property, we'll help stage it, market it effectively, and negotiate offers. We’ll ensure you understand every step, from contract signing to closing.

  • How do I make an offer on a property?

    Once you've found a property you're interested in, we will help you draft an offer that includes the price you're willing to pay and any contingencies. We'll present it to the seller, and they may accept, reject, or counter your offer.

  • What is a contingency in a real estate contract?

    A contingency is a condition that must be met before the sale can proceed, such as a home inspection or securing financing. If a contingency isn’t met, you may be able to back out of the agreement without penalty.

  • What is earnest money?

    Earnest money is a deposit made by the buyer to show they are serious about purchasing the property. If the deal goes through, it is applied toward the purchase price. If the deal falls through due to contingencies, the buyer may get the earnest money back.

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Appraisal: A professional assessment of a property's value, usually conducted by a licensed appraiser. It is typically required by lenders to determine how much to lend on a property.

Closing Costs: The fees associated with finalizing a real estate transaction, including title insurance, inspection fees, and taxes. Closing costs are typically paid by both the buyer and seller.

Comparative Market Analysis (CMA): A report that compares a property to similar properties in the area to determine its market value. Real estate agents often prepare CMAs for sellers to help set a listing price.

Contingency: A condition in a real estate contract that must be met before the deal can be completed. Common contingencies include home inspections, financing approval, and appraisals.

Down Payment: The upfront payment made by a buyer toward the purchase price of a property. It is typically a percentage of the total price, such as 20%.

Equity: The difference between the market value of a property and the amount still owed on the mortgage. As you pay down your mortgage, your equity in the property increases.

Escrow: A third-party account that holds funds or documents during the course of a real estate transaction. Escrow ensures that all conditions are met before the transaction is completed.

Fixed-Rate Mortgage: A mortgage with an interest rate that remains the same throughout the term of the loan, providing predictable monthly payments.

Homeowners Association (HOA): An organization that manages common areas and enforces rules within a residential community or condominium complex. HOA fees are typically paid by property owners to cover maintenance and amenities.

Real Estate Terminology

Home Inspection: A professional inspection of a home’s condition, usually conducted before closing, to check for structural, electrical, plumbing, and safety issues.

Loan Pre-Approval: The process in which a lender reviews your financial information and determines how much they are willing to lend you. Pre-approval gives you a clear budget and shows sellers you are a serious buyer.

Mortgage Broker: A professional who acts as an intermediary between a borrower and lenders, helping buyers find the best loan products and interest rates.

Mortgage Insurance: Insurance that protects the lender if the borrower defaults on the loan. Mortgage insurance is often required if the down payment is less than 20% of the property’s purchase price.

Multiple Listing Service (MLS): A database used by real estate agents to share property listings. It provides comprehensive details about properties for sale and is typically accessible only to licensed agents.

Offer: A formal proposal made by a buyer to purchase a property at a specific price. The seller may accept, reject, or counter the offer.

Pre-Qualification: A less formal process where a lender estimates how much money a buyer may be able to borrow based on their financial situation, but without a full review of their finances.

Principal: The original loan amount borrowed, excluding interest. It also refers to the amount of the loan that remains to be repaid.

Real Estate Agent: A licensed professional who helps clients buy, sell, or rent properties. Agents act as intermediaries between buyers and sellers, negotiating deals and facilitating transactions.

Real Estate Investment Trust (REIT): A company that owns, operates, or finances income-producing real estate. REITs allow individual investors to buy shares in large-scale, diversified portfolios of real estate assets.

Refinancing: The process of replacing an existing mortgage with a new loan, often to obtain a lower interest rate, change the loan term, or access home equity.

Short Sale: A sale of a property in which the proceeds are less than the outstanding mortgage balance. This typically occurs when the homeowner is facing financial difficulty and the lender agrees to accept less than the full amount owed.

Title: The legal right to own and use a property. A title search ensures that the property is free of any legal claims, such as liens or disputes, before a sale.

Title Insurance: Insurance that protects the buyer and lender against any legal claims or disputes related to the property’s title after the sale is complete.

Underwriting: The process in which a lender evaluates the risk of lending to a borrower, reviewing their financial documents, credit score, and other factors to determine whether to approve a loan.

Zoning: Local government regulations that dictate how properties in specific areas can be used (e.g., residential, commercial, or industrial purposes).

Cash Offer: An offer to purchase a property with no financing required, using cash instead. Cash offers are often more attractive to sellers because they are quicker and less risky.