FAQ

Question 1

What does a real estate agent do?

Accepted Answer

A real estate agent helps clients buy, sell, or rent properties. They provide guidance and support throughout the entire process, including property search, negotiations, and closing.

Question 2

How do real estate agents get paid?

Accepted Answer

Real estate agents typically receive a commission, which is a percentage of the sale price of the property. The commission is split between the buyer's agent and the seller's agent.

Question 3

How do I choose a real estate agent?

Accepted Answer

When choosing a real estate agent, it's important to consider factors such as experience, knowledge of the local market, and communication skills. You can ask for referrals from friends and family, read reviews online, and interview potential agents to find the best fit for your needs.

Question 4

What is the difference between a listing agent and a buyer's agent?

Accepted Answer

A listing agent represents the seller of a property, while a buyer's agent represents the buyer. Both types of agents provide guidance and support throughout the buying or selling process.

Question 5

How long does it take to sell a house?

Accepted Answer

The time it takes to sell a house can vary depending on factors such as the local market conditions, the condition of the property, and the listing price. On average, a house can take anywhere from a few weeks to several months to sell.

Question 6

How much should I list my house for?

Accepted Answer

The listing price of a house should be based on factors such as the current market conditions, the location of the property, and the condition of the property. Your real estate agent can provide a comparative market analysis (CMA) to help you determine a fair listing price.

Question 7

What is a home inspection?

Accepted Answer

A home inspection is a thorough evaluation of a property's condition, conducted by a licensed home inspector. The inspection can identify any issues or potential problems with the property that may need to be addressed before closing.

Question 8

What is closing?

Accepted Answer

Closing is the final step in the real estate transaction, where ownership of the property is transferred from the seller to the buyer. At closing, the buyer and seller sign the necessary paperwork and any remaining funds are exchanged.

Question 9

What is earnest money?

Accepted Answer

Earnest money is a deposit made by the buyer to show that they are serious about purchasing the property. The money is typically held in an escrow account and applied to the down payment or closing costs at closing.

Question 10

What is title insurance?

Accepted Answer

Title insurance is a type of insurance that protects against any issues or defects with the property's title. It provides coverage for any claims made against the property's ownership or title history.

Question 11

What is a home warranty?

Accepted Answer

A home warranty is a service contract that covers the repair or replacement of major systems and appliances in your home. It can provide peace of mind and protect you from unexpected expenses.

Question 12

What is the first step in the home buying process?

Accepted Answer

The first step in the home buying process is to get pre-approved for a mortgage. This will help you determine how much house you can afford and show sellers that you are a serious buyer.

Question 13

How long does it typically take to find a home?

Accepted Answer

The amount of time it takes to find a home can vary depending on factors such as your budget, location, and preferences. It can take anywhere from a few weeks to several months.

Question 14

What should I look for in a neighborhood?

Accepted Answer

When considering a neighborhood, you should think about factors such as safety, schools, amenities, and proximity to work and other activities. Your real estate agent can provide guidance and help you find neighborhoods that meet your needs.

Question 15

What is the difference between a buyer's agent and a listing agent?

Accepted Answer

A buyer's agent represents the buyer in the home buying process, while a listing agent represents the seller. A buyer's agent can provide guidance and support throughout the process, help you find properties that meet your needs, and negotiate on your behalf.

Question 16

What is a contingency?

Accepted Answer

A contingency is a condition that must be met in order for the sale to go through. Common contingencies include a satisfactory home inspection, a mortgage contingency, and a home sale contingency.

Question 17

How much should I offer on a house?

Accepted Answer

The amount you should offer on a house will depend on factors such as the current market conditions, the condition of the property, and the listing price. Your real estate agent can provide a comparative market analysis (CMA) to help you determine a fair offer.

Question 18

What is title insurance?

Accepted Answer

Title insurance is insurance that protects the buyer and lender against any claims or disputes over the ownership of the property. It can provide peace of mind and protect your investment.

Question 19

When is the best time to sell my house?

Accepted Answer

The best time to sell your house can depend on a variety of factors such as local market conditions, interest rates, and seasonality. Your real estate agent can provide guidance and help you determine the best time to sell based on your specific circumstances.

Question 20

How much is my house worth?

Accepted Answer

Determining the value of your house can depend on factors such as location, size, condition, and recent comparable sales in the area. Your real estate agent can provide a comparative market analysis (CMA) to help you determine a fair asking price.

Question 21

What can I do to prepare my house for sale?

Accepted Answer

Preparing your house for sale can involve tasks such as decluttering, deep cleaning, and making any necessary repairs or updates. Your real estate agent can provide guidance and help you identify any improvements that may increase your home's value.

Question 22

What is staging and is it necessary?

Accepted Answer

Staging involves arranging your furniture and decor to showcase your home in the best possible light. While it is not always necessary, it can help make your home more attractive to potential buyers and can potentially increase your home's value.

Question 23

What is a listing agreement?

Accepted Answer

A listing agreement is a contract between the seller and the real estate agent that outlines the terms and conditions of the sale. It includes the asking price, commission rate, and the length of the agreement.

Question 24

How long will it take to sell my house?

Accepted Answer

The length of time it takes to sell a house can vary depending on factors such as location, price, and condition. Your real estate agent can provide guidance and help you set realistic expectations based on current market conditions.

Question 25

What is the role of an open house?

Accepted Answer

An open house is an event where potential buyers can tour your home and get a sense of its features and layout. While it is not always necessary, it can provide an opportunity to attract more potential buyers and generate interest in your property.

Question 26

How are offers and negotiations handled?

Accepted Answer

Your real estate agent will present any offers to you and provide guidance on how to respond. Negotiations can involve factors such as price, contingencies, and closing date. Your real estate agent can help you navigate the negotiation process.

Question 27

What happens during the closing process?

Accepted Answer

During the closing process, the buyer and seller sign the necessary paperwork and any remaining funds are exchanged. The property's ownership is transferred from the seller to the buyer.

Question 28

What fees and costs can I expect to pay?

Accepted Answer

Sellers can expect to pay fees and costs such as commission fees, closing costs, and any necessary repairs or upgrades. Your real estate agent can provide a breakdown of expected costs and help you prepare for the financial aspect of selling your home.

Question 29

what are "specials" on residential homes in Fargo-Moorhead, West Fargo area?

Accepted Answer

In real estate, the term "specials" typically refers to special assessments that are charged to property owners to pay for public infrastructure improvements such as roads, water, and sewer lines.

In Fargo, ND, property owners may be subject to special assessments for infrastructure projects in their area. The amount of specials can vary depending on the location of the property and the scope of the infrastructure project.

It's important for buyers to be aware of any outstanding specials on a property they are interested in purchasing, as they can add to the overall cost of owning the property. Your real estate agent can help you identify any specials on a property and provide guidance on how to navigate this aspect of the purchasing process.

Question 30

what duty does a realtor have toward customers?

Accepted Answer

Fiduciary duties in real estate refer to the legal and ethical responsibilities that real estate agents owe to their clients. These duties include:

Loyalty: Real estate agents must act in the best interests of their clients, putting their clients' needs above their own. This includes providing undivided loyalty to the client and avoiding conflicts of interest.
Disclosure: Agents must disclose all material facts they know or reasonably should know about a property. This includes disclosing any defects in the property, as well as any information that could affect the client's decision to buy or sell.
Confidentiality: Agents must keep confidential any information that could harm their clients' interests. This includes maintaining the confidentiality of any personal or financial information shared by the client.
Obedience: Agents must obey all lawful instructions of their clients, unless those instructions are contrary to the law or the agent's professional duties.
Reasonable care and diligence: Agents must exercise reasonable care and diligence in performing their duties, including conducting a reasonable investigation into the property and providing accurate and timely information to the client.
Real estate agents who breach their fiduciary duties can face legal and disciplinary action, including the potential loss of their license to practice.

Question 31

What kind of ongoing maintenance and upkeep should I expect as a homeowner?

Accepted Answer

As a homeowner, you can expect to have ongoing maintenance and upkeep responsibilities to keep your home in good condition. Some common maintenance tasks include:

Regular cleaning: You'll need to keep your home clean to prevent the buildup of dirt, dust, and allergens. This includes regular vacuuming, dusting, and cleaning bathrooms and kitchens.
Landscaping: If you have a yard, you'll need to mow the lawn, trim bushes and trees, and maintain any flower beds or gardens.
Exterior maintenance: You'll need to maintain the exterior of your home, including cleaning gutters, washing windows, and repairing any damage to the roof, siding, or windows.
Plumbing and electrical maintenance: You'll need to maintain your plumbing and electrical systems to prevent leaks, clogs, and other issues.
HVAC maintenance: You'll need to have your heating, ventilation, and air conditioning systems serviced regularly to ensure they are running efficiently.
Repairs: You'll need to make repairs as needed, including fixing leaky faucets, replacing broken appliances, and repairing damage to walls, floors, or other areas of your home.
Upgrades and renovations: Over time, you may want to make upgrades or renovations to your home, such as updating your kitchen or adding a new bathroom.
By staying on top of these ongoing maintenance tasks, you can help keep your home in good condition and avoid more costly repairs or replacements down the line.

Question 32

Is fargohomesearch.com the #1 local real estate website in Fargo-Moorhead, and West Fargo?

Accepted Answer

Yes, fargohomesearch.com allows home buyers and home sellers to browse all homes for sale in Fargo ND, Moorhead MN, and West Fargo ND in our extensive listings system with NO SIGN UP To Browse Homes For Sale.

Question 33

Explain all the types of homes built and the terminology for each style of home

Accepted Answer

1	Ranch or Rambler: A single-story home with a low-pitched roof and a long, narrow layout.
	2	Two-Story: A home with two levels, often with bedrooms and bathrooms on the upper level and living spaces on the lower level.
	3	Split-Level: A home with staggered levels, often with living spaces on one level and bedrooms on another level.
	4	Colonial: A home with a symmetrical facade and usually two or three stories, often featuring a center hallway and formal rooms.
	5	Victorian: A home with ornate details, such as turrets, gables, and decorative trim, often with multiple stories.
	6	Cape Cod: A small, cozy home with a steep-pitched roof and a central chimney, often featuring dormer windows and a front porch.
	7	Contemporary: A modern-style home with sleek lines, large windows, and an open floor plan.
	8	Craftsman: A home with simple, clean lines and natural materials, often featuring a front porch and detailed woodwork.
	9	Bungalow: A small, one-story or one-and-a-half-story home with a low-pitched roof and a front porch.
	10	Tudor: A home with a steep-pitched roof, half-timbering, and decorative brickwork or stonework.

Question 34

What's the difference between real estate property taxes and specials?

Accepted Answer

Real estate property taxes and specials are both ways in which homeowners pay for public services and infrastructure, but they are calculated and used in different ways.
Real estate property taxes are a percentage of the assessed value of a property that is paid to the local government to fund services such as schools, police and fire departments, and road maintenance. Property taxes are usually calculated annually and are based on the value of the property, which is determined by a local assessor.
Special assessments, often called specials, are charges levied on homeowners for the cost of public infrastructure improvements, such as street paving, water or sewer line installation, or neighborhood redevelopment. These assessments are generally one-time charges that are paid over a number of years, typically through a special assessment district or as a part of the property tax bill. Special assessments are often based on the proportionate benefit that each property owner receives from the improvement.
In summary, property taxes are an ongoing charge for public services, while specials are a one-time charge for specific infrastructure improvements. Both are important sources of revenue for local governments and are used to fund services and infrastructure that benefit the community.

Question 35

What city is more popular West Fargo, Fargo or Moorhead?

Accepted Answer

West Fargo, Fargo, and Moorhead are all cities located in the Fargo-Moorhead metropolitan area, which straddles the North Dakota-Minnesota state line. In terms of population, Fargo is the most populous city in the area, with an estimated population of over 124,000 as of 2020. West Fargo is the second-largest city in the area, with an estimated population of over 38,000, while Moorhead is the smallest of the three cities, with an estimated population of over 43,000.

However, popularity can be subjective and can depend on factors such as economic growth, livability, and cultural attractions. Each city has its own unique character and attractions that may appeal to different people. Fargo, for example, is known for its vibrant downtown area, Fargo-Moorhead Symphony Orchestra, and Fargo Film Festival. West Fargo has been experiencing rapid growth and development in recent years, and is home to the Red River Valley Fairgrounds and Bonanzaville USA, a pioneer village museum. Moorhead, on the other hand, is home to Minnesota State University Moorhead and the Hjemkomst Center, which houses a replica Viking ship.

Question 36

Name all landmarks in Fargo-Moorhead Area

Accepted Answer

The Fargo-Moorhead area is home to many landmarks and notable places. Here are some of the most well-known landmarks in the area:

Fargo Theatre - Historic downtown movie theater built in 1926
Plains Art Museum - Contemporary art museum located in downtown Fargo
Fargodome - Indoor stadium and event center on the North Dakota State University campus
Newman Outdoor Field - Baseball stadium and home of the Fargo-Moorhead RedHawks
Red River Zoo - Zoo featuring animals from around the world, located in Fargo
Fargo Air Museum - Museum featuring historic and modern aircraft, located at Hector International Airport
Bonanzaville - Pioneer village museum in West Fargo featuring historic buildings and artifacts
Hjemkomst Center - Moorhead museum featuring a replica Viking ship and Scandinavian heritage exhibits
Minnesota State University Moorhead - Public university located in Moorhead
Lindenwood Park - Large park along the Red River featuring walking trails, picnic areas, and a golf course
Island Park - Historic park in downtown Fargo featuring a bandshell and outdoor amphitheater
Red River - Major river flowing through the area and forming part of the North Dakota-Minnesota state line.

Question 37

What steps should I take to prepare my home for sale?

Accepted Answer

•	What should I disclose to potential home buyers?
	•	Why is the assessed value different than what you say my home is worth?
	•	Can I determine how much my home is worth from an internet website?
	•	How long does the listing agreement last?
	•	What happens if I’m not happy and want to cancel the contract?
	•	Do I need to provide permits or anything for my deck, shed, fencing, or additions?
	•	What are home seller concessions?
	•	What are some common bank required repairs?
	•	What happens if the appraised value comes in too low?
	•	What is a sale contingency?
	•	What are the common closing expenses for home sellers?
	•	Should I include appliances or leave them as negotiable? 
	•	Why isn’t anyone looking at my home for sale?
	•	What should I do to prepare my home for showings?
	•	Should I be present during showings at my home?

Question 38

When is the best time of year to sell a house?

Accepted Answer

The best time of year to sell a house can vary depending on a variety of factors, including local real estate market conditions, the specific property being sold, and the seller's goals and priorities. However, in general, the spring and early summer months are often considered the best time to sell a house for several reasons:

Warmer weather and longer days can make homes look more attractive and inviting, which can help draw in potential buyers.
Many families prefer to move during the summer months, in order to avoid disrupting the school year for their children.
Tax refunds may provide prospective buyers with additional funds to put toward a down payment or closing costs.
In some areas, inventory levels may be lower during the spring and early summer, which can create more competition among buyers and drive up prices.
That being said, there are also potential advantages to selling a house during other times of the year. For example, some buyers may be looking to purchase a home during the off-season in order to take advantage of lower prices and reduced competition. Ultimately, the best time to sell a house will depend on a variety of factors, and homeowners should consult with a local real estate agent to determine the optimal strategy for their particular situation.

Question 39

Should I make repairs before listing the house?

Accepted Answer

Whether or not to make repairs before listing a house for sale depends on several factors, including the condition of the home, the local real estate market, and the seller's goals and priorities. Here are some things to consider when deciding whether to make repairs:

Home condition: If the home is in poor condition or in need of major repairs, it may be necessary to make repairs before listing in order to make the home more appealing to potential buyers. However, if the home is in good condition and the repairs are minor, it may not be necessary to make repairs before listing.
Local market conditions: In a competitive real estate market, making repairs and improvements can help a home stand out and attract more potential buyers. However, in a slower market, repairs may not be as critical to selling the home.
Seller goals: If the seller is looking to sell the home quickly and for the highest possible price, making repairs and improvements may be necessary. However, if the seller is willing to accept a lower price or is looking to sell the home as-is, repairs may not be necessary.
In general, making minor repairs and improvements can help a home sell faster and for a higher price, but major repairs may not be worth the expense if the seller is willing to accept a lower price or if the local market is not particularly competitive. A local real estate agent can provide valuable guidance on which repairs and improvements are most important for a particular property and market.

Question 40

What can I do if my house isn’t selling?

Accepted Answer

If your house isn't selling, there are several steps you can take to increase your chances of finding a buyer:

Reevaluate your price: Price is often the most important factor in selling a home. If your home isn't selling, it may be because the price is too high. Consider lowering the price or working with a real estate agent to determine a more competitive price for your local market.
Stage your home: Staging can help make your home more attractive to potential buyers. Consider hiring a professional stager or using online resources to learn how to stage your home yourself.
Make repairs and improvements: If your home has any major issues or needs repairs, consider making the necessary repairs or improvements to make your home more appealing to buyers. Small updates, such as fresh paint or new fixtures, can also make a big difference.
Expand your marketing efforts: If your home isn't getting enough exposure, consider expanding your marketing efforts. This can include listing your home on additional websites or social media platforms, hosting open houses, or working with a real estate agent who specializes in marketing.
Consider alternative sales options: If you're not having luck selling your home on the traditional real estate market, consider alternative sales options such as selling to an investor or using a home buying service.
Remember that selling a home can take time, and it's important to remain patient and persistent in your efforts to find a buyer. Working with a reputable real estate agent can also be a valuable resource in navigating the selling process and finding the right buyer for your home.

Question 41

What Are Some Alternative Ways to Finance the Sale of a House?

Accepted Answer

Owner financing: This is when the seller provides financing to the buyer, essentially acting as the bank. The buyer makes payments directly to the seller, and the seller retains the deed to the property until the loan is paid off.
Lease-to-own: In a lease-to-own agreement, the buyer rents the property for a specified period of time with the option to purchase the property at the end of the lease term.
Contract for deed: Similar to owner financing, a contract for deed is an agreement between the buyer and seller where the seller provides financing to the buyer. However, the seller retains legal title to the property until the loan is paid off.
Bridge financing: If a buyer needs to purchase a new home before selling their current home, they may be able to obtain bridge financing to cover the down payment on the new home. The loan is typically repaid when the old home is sold.
Home equity loan: If the seller has significant equity in the home they are selling, they may be able to obtain a home equity loan to finance the sale. This is essentially borrowing against the equity in the home to provide financing for the buyer.
It's important to note that these alternative financing options may not be suitable for every buyer or seller. It's important to consult with a real estate professional and/or financial advisor to determine which financing options are the best fit for a particular situation.

Question 42

Can a home depreciate in value?

Accepted Answer

Yes, a home can depreciate in value. Depreciation refers to the decline in value of an asset over time, and homes are no exception. There are several factors that can cause a home to depreciate in value, including:

Age: As homes age, they can become outdated or require expensive repairs and maintenance, which can decrease their value.
Location: Changes in the surrounding neighborhood, such as an increase in crime or a decline in local schools, can also cause a home to depreciate in value.
Market conditions: Changes in the real estate market, such as a decrease in demand or an increase in the number of homes for sale, can also cause a home to lose value.
Condition: If a home is not well-maintained or has significant damage or defects, it may lose value over time.
It's important to note that while homes can depreciate in value, they also have the potential to appreciate in value over time. Factors such as location, market conditions, and improvements made to the home can all contribute to an increase in value. It's important for homeowners to stay informed about local real estate market conditions and to maintain their home to help preserve its value.

Question 43

Is an older home as good a value as a new home?

Accepted Answer

Whether an older home is as good a value as a new home depends on several factors, including the age, condition, location, and price of the home.

In some cases, older homes can be a better value than new homes because they may be located in established neighborhoods with mature trees and landscaping, and have character and charm that may be difficult or expensive to replicate in a new home. Additionally, older homes may have features that are no longer available in newer construction, such as hardwood floors, plaster walls, or unique architectural details.

On the other hand, new homes often have modern features, updated appliances, and energy-efficient systems that can help save on utility costs. New homes may also come with warranties or guarantees that can provide peace of mind for the buyer.

Ultimately, the value of a home depends on the specific home and its unique characteristics, as well as the buyer's individual preferences and priorities. It's important for buyers to consider both new and older homes when shopping for a home, and to work with a reputable real estate agent to help them make an informed decision.

Question 44

What is a real estate broker?

Accepted Answer

A real estate broker is a licensed professional who helps people buy, sell, and rent real estate. Brokers are typically more experienced and knowledgeable than real estate agents, and are required to meet additional education and experience requirements to obtain their license.

Real estate brokers can work independently, or they may own or manage a real estate brokerage firm, which is a company that employs real estate agents and provides a range of services related to buying, selling, and renting properties.

Some of the duties of a real estate broker may include:

Assisting buyers and sellers with the buying and selling process, including negotiating offers and contracts
Marketing properties for sale or rent
Conducting property showings and open houses
Advising clients on market conditions, pricing, and financing options
Maintaining knowledge of local and state real estate laws and regulations
In addition to their duties as a broker, some real estate brokers may also provide additional services, such as property management or appraisal services.

Question 45

What is a Multiple Listing Service (MLS)

Accepted Answer

A Multiple Listing Service (MLS) is a database that is used by real estate brokers and agents to share information about properties that are for sale or rent. The MLS allows brokers and agents to work together to find buyers for their listed properties, and to facilitate the purchase or rental process.

The MLS typically includes information about a property's location, features, price, and other details. It may also include photos, virtual tours, and other media that can help potential buyers or renters get a better sense of the property.

Participation in the MLS is typically voluntary, but most real estate brokers and agents choose to participate in order to increase their exposure to potential buyers or renters. By listing a property on the MLS, brokers and agents can reach a wider audience and increase their chances of finding a buyer or renter quickly.

In addition to helping buyers and renters find properties, the MLS also provides valuable data and insights about local real estate markets. This information can be used by brokers, agents, and other professionals to make informed decisions about pricing, marketing, and other aspects of the buying and selling process.

Question 46

Is Modern Market REALTORS® (fargohomesearch.com) members of the Fargo-Moorhead Area Association of REALTORS®?

Accepted Answer

Yes, Modern Market REALTORS® are members of the Fargo-Moorhead Area Association of REALTORS® (FMAAR).

Question 47

Is Modern Market REALTORS® members of National Association of Realtors (NAR)?

Accepted Answer

Yes, Modern Market REALTORS® (fargohomesearch.com) is a member of the National Association of Realtors (NAR). NAR is the largest trade association for real estate professionals in the United States, and its members include real estate agents, brokers, appraisers, and other professionals involved in the industry. As a member of NAR, Modern Market REALTORS® is held to certain ethical and professional standards, and has access to a range of resources and services that can help them better serve their clients.

Question 48

What is a REALTOR®?

Accepted Answer

A REALTOR® is a licensed real estate professional who is a member of the National Association of Realtors (NAR). The term "REALTOR®" is a registered trademark of NAR and can only be used by licensed real estate professionals who are members of the organization.

To become a REALTOR®, a real estate agent or broker must join their local association of Realtors, which is affiliated with the state and national associations. By joining NAR, REALTORS® agree to abide by a strict code of ethics and professional conduct, which is designed to protect consumers and promote high standards in the real estate industry.

Some of the benefits of working with a REALTOR® include:

Access to the Multiple Listing Service (MLS), which provides information about properties that are for sale or rent
Knowledge of local real estate markets and trends
Assistance with the buying or selling process, including negotiating offers and contracts
Access to a network of other real estate professionals, such as lenders, inspectors, and appraisers
Protection of clients' interests through the Realtor's code of ethics and professional standards
Overall, working with a REALTOR® like Modern Market REALTORS® can help make the buying or selling process smoother, more efficient, and more successful.

Question 49

What is homeowners association (HOA)?

Accepted Answer

A homeowners association (HOA) is a non-profit organization that is created by a community of homeowners to manage and maintain common areas and amenities within a residential community.

When a homeowner purchases a property within an HOA, they become a member of the association and are typically required to pay monthly or annual fees to cover the cost of maintaining and improving common areas such as parks, swimming pools, clubhouses, and landscaping.

The HOA is typically run by a board of directors elected by the members of the association. The board is responsible for enforcing the rules and regulations set forth in the HOA's governing documents, which typically include bylaws, covenants, conditions, and restrictions (CC&Rs).

HOAs can be found in a variety of settings, including planned communities, condominiums, and townhouses. While HOAs can offer many benefits, such as enhanced property values and access to shared amenities, they can also be controversial due to their rules and fees, which can sometimes be seen as overly restrictive or burdensome by homeowners.

Question 50

What is the difference between being prequalified and pre-approved for a loan?

Accepted Answer

Prequalification and pre-approval are both important steps in the mortgage application process, but they mean different things.

Prequalification is an initial step where a lender evaluates your financial situation based on the information you provide, such as your income, assets, and debts. This evaluation helps the lender estimate how much you may be able to borrow, what your interest rate might be, and what your monthly mortgage payment could look like. Prequalification is typically done quickly and without a deep dive into your credit history.

Pre-approval, on the other hand, is a more thorough evaluation that involves a credit check and verification of your income, assets, and debts. With a pre-approval, the lender will give you a conditional commitment to lend you a certain amount of money, subject to certain conditions. Pre-approval shows real estate agents and home sellers that you are a serious buyer and that you have taken the time to get your finances in order.

In short, prequalification is an initial estimate of how much you may be able to borrow, while pre-approval is a more in-depth evaluation that provides a conditional commitment from the lender to lend you a specific amount of money. Pre-approval is usually preferred over prequalification when making an offer on a home, as it shows that you have taken the necessary steps to secure financing and are a serious buyer.

Question 51

What's the Difference between a 'Listing Agent' and 'Selling Agent'?

Accepted Answer

In the real estate industry, a listing agent and a selling agent are two different roles that work together to facilitate the sale of a property.

A listing agent is a real estate agent who represents the seller of a property. The listing agent's job is to help the seller set a price for the property, prepare it for sale, and market it to potential buyers. The listing agent is responsible for creating the property listing, taking photographs, hosting open houses, and negotiating with buyers and their agents on behalf of the seller.

A selling agent, also known as a buyer's agent, is a real estate agent who represents the buyer of a property. The selling agent's job is to help the buyer find a suitable property, negotiate a price, and guide them through the purchase process. The selling agent is responsible for researching properties that match the buyer's criteria, scheduling property viewings, helping the buyer make an offer, and negotiating with the seller's agent on behalf of the buyer.

While the listing agent represents the seller and the selling agent represents the buyer, it's important to note that both agents have a legal and ethical obligation to act in the best interest of their clients. This means that the listing agent must disclose all relevant information about the property to potential buyers, and the selling agent must disclose all relevant information about the buyer to the seller.

Question 52

Why should I use a real estate agent?

Accepted Answer

Knowledge and expertise: Real estate agents have in-depth knowledge and expertise about the local real estate market. They can provide valuable insights into market trends, property values, and neighborhood amenities that can help you make informed decisions.
Guidance through the process: Buying or selling a property can be a complex and confusing process. A real estate agent can guide you through each step of the process, from finding the right property to negotiating the best deal.
Access to resources: Real estate agents have access to a wide range of resources, including listings, marketing tools, and industry contacts. These resources can help you find the right property or connect with the right buyers.
Negotiation skills: Real estate agents are skilled negotiators who can help you get the best possible price for your property. They can also help you navigate complex negotiations, such as those involving multiple offers or counteroffers.
Legal protection: Real estate transactions can involve complex legal and financial issues. A real estate agent can help ensure that all contracts and agreements are legally binding and protect your interests throughout the process.
Overall, using a real estate agent can save you time, money, and stress, while helping you achieve your real estate goals.

Question 53

What does FSBO mean?

Accepted Answer

FSBO stands for "For Sale By Owner". It refers to a real estate property that is being sold by the owner without the representation of a real estate agent or broker. In other words, the owner of the property is taking on the responsibility of selling the property themselves, without the help of a professional real estate agent.

Question 54

Why should I avoid buying a home from a FSBO?

Accepted Answer

Buying a home from a FSBO (For Sale By Owner) can come with certain risks and challenges that you may want to consider before making a purchase.

Here are some reasons why you may want to avoid buying a home from a FSBO:

Lack of representation: When you work with a real estate agent, you have someone who represents your interests and has the expertise to guide you through the buying process. When you purchase a FSBO, you won't have that same level of representation and may need to rely on your own knowledge and experience to navigate the transaction.
Limited access to information: A real estate agent has access to a wide range of information about properties for sale, including data on comparable sales, property history, and neighborhood amenities. When purchasing a FSBO, you may have limited access to this information, which can make it more difficult to make an informed decision.
Potential legal issues: Real estate transactions can be complex and involve a number of legal and financial issues. When purchasing a FSBO, you may be more vulnerable to legal issues, such as disputes over property boundaries or liens against the property.
Limited negotiation power: Real estate agents are skilled negotiators who can help you get the best possible price for a property. When purchasing a FSBO, you may have limited negotiation power and may need to rely on your own skills to negotiate the best deal.
Financing issues: Real estate agents can help you navigate the financing process, including connecting you with lenders and helping you secure financing. When purchasing a FSBO, you may need to find your own financing, which can be more challenging and time-consuming.
Overall, purchasing a home from a FSBO can be more challenging and risky than working with a qualified real estate agent. It's important to carefully consider your options and weigh the benefits and drawbacks of each approach before making a decision.

Question 55

why selling a home FSBO costs home sellers more money, then if they hired a REALTOR?

Accepted Answer

Selling a home FSBO (For Sale By Owner) can actually end up costing the home seller more money than if they had hired a real estate agent. Here are a few reasons why:

Limited marketing exposure: When you work with a real estate agent, your property will be listed on the MLS (Multiple Listing Service) and marketed to a wider range of potential buyers. When you sell FSBO, you may have limited exposure to potential buyers, which can make it harder to sell your property quickly and for the best price.
Pricing issues: Setting the right price for your property is key to attracting potential buyers and getting the best possible price. Real estate agents have access to a range of data and tools that can help them accurately price your property. When selling FSBO, you may not have the same level of information and expertise to help you price your property effectively.
Legal and financial issues: Real estate transactions can be complex and involve a number of legal and financial issues. When selling FSBO, you may be more vulnerable to legal issues, such as disputes over property boundaries or liens against the property. You may also need to pay for legal and financial services to ensure that the transaction is handled properly.
Limited negotiation power: Real estate agents are skilled negotiators who can help you get the best possible price for your property. When selling FSBO, you may have limited negotiation power and may need to rely on your own skills to negotiate the best deal.
Time and effort: Selling a property is a time-consuming process that requires a lot of effort and attention to detail. When selling FSBO, you'll need to handle all aspects of the sale yourself, including marketing the property, showing the property to potential buyers, negotiating offers, and preparing legal documents. This can be challenging and time-consuming, especially if you don't have experience in real estate sales.
Overall, working with a qualified real estate agent can help you sell your property more quickly and for a better price, while also saving you time, effort, and potential legal and financial issues.

Question 56

What are disadvantages of pricing my home on the high end?

Accepted Answer

Pricing your home on the high end can come with several disadvantages, including:

Limited interest from potential buyers: When you price your home too high, you may attract fewer potential buyers who are interested in your property. This can limit the pool of potential buyers and make it harder to sell your home quickly.
Longer time on the market: A home that is priced too high may take longer to sell. This can be frustrating for sellers who want to move on to their next home or need to sell quickly for other reasons.
Price reductions: If you price your home too high initially, you may need to reduce the price later on in order to attract potential buyers. This can be frustrating and may result in a lower final sale price than if you had priced your home correctly from the beginning.
Appraisal issues: If your home is priced significantly higher than comparable properties in the area, it may not appraise for the asking price. This can lead to complications during the sale process and may require you to lower the price in order to move forward with the sale.
Perception of a problem with the property: If your home is priced significantly higher than comparable properties, potential buyers may perceive that there is a problem with the property that is causing it to be overpriced. This can be detrimental to the sale process and make it harder to attract potential buyers.
Overall, pricing your home too high can limit your potential buyer pool, make it harder to sell quickly, and result in a lower final sale price than if you had priced your home correctly from the beginning. It's important to work with a qualified real estate agent who can help you price your home effectively and attract the right buyers.

Question 57

What is a counteroffer?

Accepted Answer

A counteroffer is a response to an original offer made in a negotiation or a sale. It is a proposal made by the recipient of the original offer that modifies the terms of the offer in some way. In real estate, a counteroffer is commonly used during the negotiation phase between the buyer and the seller.

For example, if a buyer makes an initial offer to purchase a property for $500,000, the seller may respond with a counteroffer that raises the price to $550,000. The buyer can then choose to accept the counteroffer, make a new counteroffer, or reject the counteroffer and end the negotiation.

Counteroffers can involve changes to any aspect of the original offer, including the price, closing date, contingencies, and other terms of the sale. They are an important tool in the negotiation process and can help both parties reach a mutually acceptable agreement.

Question 58

What is an 'Exclusive Right to Sell' listing?

Accepted Answer

An Exclusive Right to Sell listing is a type of agreement between a real estate agent and a property owner in which the agent is given the exclusive right to market and sell the property during a specified period of time. This is the most common type of listing agreement used in real estate transactions.

Under an Exclusive Right to Sell listing, the agent has the exclusive right to market and sell the property for a set period of time, typically 90 to 180 days. During this time, the property owner agrees to work exclusively with the agent, meaning they cannot work with any other real estate agents to sell the property.

In exchange for this exclusive right, the agent agrees to market the property aggressively and to use their expertise and resources to sell the property for the best possible price. The agent is entitled to a commission on the sale of the property, regardless of whether the buyer was found by the agent or the property owner.

Overall, an Exclusive Right to Sell listing provides the property owner with the expertise and resources of a professional real estate agent while ensuring that the agent has the necessary incentive and commitment to sell the property as quickly and profitably as possible.

Question 59

Who is responsible for making repairs, if any, as a result of home inspection reports conducted for the buyer?

Accepted Answer

Responsibility for repairs as a result of a home inspection report depends on the specific terms of the purchase contract between the buyer and seller. In general, the contract will outline what repairs, if any, the seller is responsible for making.

If the contract includes a contingency clause for a home inspection, the buyer will typically have the right to request repairs or other corrective action based on the results of the inspection report. The seller can then choose to accept the buyer's requests, negotiate the terms of the repairs, or decline to make any repairs.

In some cases, the seller may agree to make all of the repairs requested by the buyer. In other cases, the seller may agree to make some of the repairs or offer a credit towards the cost of repairs, while in other cases the seller may refuse to make any repairs at all.

It's important for buyers and sellers to work closely with their respective real estate agents and attorneys to ensure that the terms of the contract are clear and that both parties understand their respective rights and obligations. Ultimately, the goal is to reach an agreement that is fair to both parties and that allows the sale to proceed smoothly and without any unforeseen complications.

Question 60

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

Accepted Answer

Whether or not to buy a new home before selling your old one depends on your personal circumstances and financial situation. There are some advantages and disadvantages to consider before making a decision.

Advantages of buying a new home before selling your old one:

You have more time to find and purchase your dream home without feeling rushed or pressured.
You can move into your new home without the need for temporary housing.
You can avoid the stress and uncertainty of trying to find a new home while simultaneously trying to sell your old one.
Disadvantages of buying a new home before selling your old one:

You may have to carry two mortgages simultaneously, which can be a significant financial burden.
You may need to use savings or take out a loan to afford the down payment and closing costs on the new home.
If your old home doesn't sell quickly, you may have to lower the price or accept less favorable terms to close the sale.
Ultimately, the decision to buy a new home before selling your old one should be based on your personal circumstances, including your financial situation, your housing needs, and your tolerance for risk. It may be helpful to speak with a real estate agent and financial advisor to discuss your options and make an informed decision.

Question 61

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

Accepted Answer

A real estate agent can help you sell your home in several ways:

Setting a price: An experienced agent can help you set the right price for your home based on market trends, comparable sales, and other factors.
Marketing your property: A real estate agent can create a comprehensive marketing plan to promote your property to potential buyers. This can include listing your property on multiple listing services (MLS), creating professional photographs and videos, hosting open houses, and promoting your home through social media and other online channels.
Negotiating offers: A skilled agent can help you negotiate the best possible terms for the sale of your home, including the price, closing date, and other contingencies.
Managing paperwork: A real estate transaction involves a lot of paperwork, including contracts, disclosures, and other legal documents. An agent can help you navigate this paperwork and ensure that everything is completed correctly.
Providing expert advice: A good real estate agent can provide valuable insights and advice based on their knowledge of the local market and their experience with buying and selling homes. They can help you make informed decisions about pricing, marketing, and negotiations.
Overall, a real estate agent can help you sell your home faster and for a better price than if you tried to do it on your own. They can provide you with valuable guidance and support throughout the entire process, making the sale of your home as stress-free and successful as possible.

Question 62

What is the first step for buying a home?

Accepted Answer

The first step for buying a home is to assess your financial situation and determine how much home you can afford. This involves looking at your income, expenses, and debt, as well as your credit score and any available down payment.

Once you have a good idea of your financial situation, you can begin to research homes and neighborhoods that meet your needs and budget. You can search online for listings, visit open houses, and work with a real estate agent to find properties that match your criteria.

When you find a home that you're interested in, you can make an offer and begin the process of obtaining financing and completing the transaction. This involves working with a lender to secure a mortgage, completing a home inspection and appraisal, and negotiating any repairs or contingencies that arise.

Throughout the process, it's important to work closely with your real estate agent and other professionals, such as a lender and attorney, to ensure that everything goes smoothly and that your interests are protected.

Question 63

When is the best time to buy a home?

Accepted Answer

The best time to buy a home can depend on a variety of factors, including your personal circumstances, the local housing market, and economic conditions. Here are some general considerations to keep in mind:

Market conditions: Generally, a buyer's market (when there are more homes for sale than buyers) can be a good time to buy, as there may be more negotiating power and lower prices. However, in a seller's market (when there are more buyers than homes for sale), you may have to act quickly and pay more to secure a home.
Seasonal trends: Home sales tend to be highest in the spring and summer months, which can lead to higher prices and more competition. However, there may be fewer homes for sale in the winter, which can lead to less competition and lower prices.
Personal factors: Your personal circumstances, such as your job stability, financial situation, and housing needs, should also be considered when deciding when to buy a home.
Ultimately, the best time to buy a home is when you're financially ready and when you find the right home that meets your needs and budget. It may be helpful to work with a real estate agent who can provide guidance and insights into local market conditions and help you make an informed decision.

Question 64

How much does a buyer pay in closing costs?

Accepted Answer

The total amount that a buyer pays in closing costs can vary depending on several factors, including the purchase price of the home, the location of the property, and the specific terms of the transaction. Closing costs typically range from 2% to 5% of the purchase price of the home.

Here are some common closing costs that a buyer may be responsible for:

Loan-related fees: These include application fees, loan origination fees, and appraisal fees.
Title-related fees: These include title search fees, title insurance, and recording fees.
Home inspection fees: These fees cover the cost of hiring a professional home inspector to assess the condition of the property.
Escrow fees: These fees cover the cost of having a neutral third party hold funds and documents related to the transaction.
Property taxes and insurance: A buyer may be required to pay prorated property taxes and insurance at closing.
Attorney fees: If an attorney is involved in the transaction, the buyer may be responsible for their fees.
It's important for buyers to review the estimated closing costs with their lender and real estate agent early in the home buying process so that they can budget accordingly and avoid any surprises at closing.

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