FAQ
Frequently asked questions when buying a house
While attending a real estate event, I heard a speaker encourage agents to prepare a one-sheet list of frequently asked questions. He pounded home the issue and later provided his own list. I took some of his suggestions and compiled this set. I think his answers were a little cheeky with a dash of attitude, but hopefully you will still find this helpful.
How many properties do people usually see before buying? How often do people find their house on the first day of their search? Surprisingly, buyers often do find their house on the first day of their search! Other buyers take longer. The National Association of Realtors reports average buyer search: 8 weeks, homes viewed: 9 properties. (I’m sure these stats change depending on the year/market.)
What if I can’t find my dream home? Buying a home is a process of elimination. Remember the 80-10-10 Rule: If you like 80% of the property, you can probably fix 10% of what you don’t like and live with the remaining 10%.
When do I need to make an offer? Although some properties appear to be accepting offers over the course of a weekend or several days, a seller can still accept an offer at anytime. If you like the house, offer as soon as possible. If you need time to sleep on it — you might not get to sleep in it!
What is the likelihood of a multiple offer situation? Extreme.
Do I need a home inspection? Yes. Dropping the home inspection contingency remains a highly effective strategy in winning against multiple other offers. Buyer beware.
How long does a home inspection take? Four hours approximately. You will need to schedule this to take place in the first 7-10 days after your offer has been accepted.
What is earnest money and what happens to it? Earnest money secures your contract. Break the contract, lose the money. The money sits in a trust fund until closing when it becomes part of your down payment.
What if I change my mind? Until the moment your offer is accepted, you can withdraw it. Once accepted, you have a legally binding contract. Breaking that contract will easily cost you your earnest money — and may even result in legal action.
What if the property doesn’t appraise? We will renegotiate the purchase price. If you have offered to cover the appraisal gap (difference between offer price and appraised value), you will need to bring extra cash to closing.
How long will this take to close? A good lender can close a deal in 30 days. A cash deal can close more quickly. A large bank will often take 45—60 days.
Is the closing date in the contract guaranteed? No. It’s the first target but can still be moved or negotiated throughout the transaction.
Can I get back into the house during the transaction? After your offer is accepted, you can enter the property during the inspection and later at the final walkthrough. Take extra photos and measurements then. Don’t poke the bear.
When will I get the keys to my new house? Keys are awarded at closing.