Do you have more questions about navigating the world of real estate? We’ve put together a list of more answers to commonly asked real estate questions. Here’s part 2 of our real estate FAQs:

Real Estate FAQ #7: Do I need to sell my current home before buying a new home?

If you own a home and want to use your home equity for your down payment, you will need to sell your home before buying a new one. Instead of selling their home, some buyers decide to turn it into an investment property by renting it out. If you decide to do this, you will not need to sell your home before buying a new one. However, your mortgage lender will need to evaluate your credit history and risk profile before determining if you qualify for a loan on a new home while retaining the title to your current home.

Real Estate FAQ #8: What is earnest money?

When you make an offer on a house, your agent will ask for an earnest money deposit. You will write a check to accompany your offer, and this amount is usually 1 to 2 percent of the purchase price. This earnest money is a good faith demonstration to the seller that your offer is genuine. It also essentially reserves the home for you and takes it off the market. The check is deposited into an escrow account for safekeeping. If the sale continues, the earnest money is applied to the down payment and closing costs. If the sale falls through for a reason listed in the purchase agreement, you will get the money back.

Real Estate FAQ #9: How many homes should I look at before buying one?

It’s up to you how many homes you want to view before purchasing one. The ability to search for homes online makes it easy to look at pictures and details before ever stepping foot outside your home. This convenience has changed the home buying game and makes it possible to look at hundreds of properties online. However, online searches still don’t take the place of visiting a prospective home and seeing how it looks and feels in person.

Real Estate FAQ #10: What if my offer is rejected?

When you make an offer on a home, it should include a timeframe in which the seller should respond. This response can be a flat-out acceptance or rejection of your offer. An acceptance means you continue through the process to purchase the home. A rejection means you do not get to buy the home and must find a different one. Alternatively, the seller can initiate a counteroffer. If you receive a counteroffer, you and your agent can choose to accept or re-counter it. These negotiations can go back and forth many times before the terms of the deal are agreed upon.

Real Estate FAQ #11: Should I order a home inspection?

Yes, you should definitely order a home inspection when buying a house. If you are financing your home with an FHA or VA loan, a home inspection is required. Other mortgage programs may or may not require an inspection. However, it is recommended to order a home inspection because it can reveal defects or issues that you may not have noticed. Because this is one of the biggest investments you’ll likely make, you want the peace of mind that a home inspection brings.

Real Estate FAQ #12: Should I do a final walkthrough?

A final walkthrough is not required; however, it is a good idea. A final walkthrough gives buyers the chance to make sure nothing has changed since they first viewed the home. If repairs were requested as part of the offer or home inspection, you can ensure everything was taken care of and meets the terms of the contract. Final walkthroughs should occur within a week of the closing date, but preferably within the last 3 days. 

Do you have more questions about buying or selling a home? Our real estate professionals are here to help make the process as easy as possible! Reach out to us today to get in touch with an agent about your questions and to get the help you need to successfully buy or sell your home!