Navigating real estate can be overwhelming, but answers to common questions about buying, selling, and market trends make the process much clearer. Whether you are wondering how agent commissions work, how to secure a mortgage, or what closing costs entail, understanding the basics sets you up for success.
For Homebuyers
What is a mortgage pre-approval?
It is a lender’s written commitment to lend you a specific amount of money based on your financial background. You should secure this before touring homes, as sellers require it to take your offers seriously.
Do I need a written agreement with my agent?
Yes. Buyers must sign a written agreement outlining the agent’s duties and compensation before touring any properties.
How are buyer’s agents paid?
Following industry practice changes, buyer agent compensation is now set by direct negotiation between the buyer and the agent, rather than being universally offered by the seller. This means buyers need to explicitly factor agent fees into their home purchase strategy.
What is earnest money?
It is a good faith deposit (typically 1%-3% of the purchase price) that you submit with your offer to prove to the seller that you are a serious buyer.
Real Estate Terminology
What is the MLS?
The Multiple Listing Service (MLS) is a private, cooperative database where real estate professionals list homes for sale. It ensures maximum market exposure for sellers.
What are contingencies?
These are specific clauses in the purchase contract that allow a party to back out without penalty (e.g., if the home fails a structural inspection or the buyer’s mortgage falls through).
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