Real Estate Questions & Answers

Q) How do I go about finding a house?

A) Choosing a home is based on location convenient for the homebuyer.  Ride around and read the signs, select a service that helps locate homes or hire a real estate agent to represent your interests.  

Q) How much earnest money do I need?

A) Earnest money is negotiable between the buyer and seller.  It is based on the agreement between the parties.  This earnest money may be nominal or expensive. 

Q) Will I need a down payment to purchase a house?

A) Down payments are dependent upon credit requirements to get a loan.  They range from zero down to variable amounts based on buyer preference and lender requirements.  FHA allows 100% gift funds for your down payment. The gift can be from any relative, or special person, or can be collected through creative financing programs.  In most cases, a down payment from 3% to 5% or up to 20% saved up by the buyer is favorable to a lender.

Q) Who pays the real estate agents fee when they represent a buyer?

A) The seller includes the real estate commissions for the listing broker and selling broker in the cost of the price of the home.  A buyer traditionally does not pay the cost of a real estate agent unless agreed to by the buyer and the real estate agent.  A real estate agent may charge transaction fees or fees to cover the costs of providing services to a buyer.  

Q) Is any part of the earnest money refundable?

A) Earnest money may be refunded in the event a loan application is denied by the lender.  However, the terms of a refund must be included in the purchase and sale agreement signed by the buyer and seller.

Q) Who pays for the repairs for a house for sale?

A) Repairs are negotiated between the buyer and seller.  Generally, the seller will cover the cost of repairs up to a certain amount.  The buyer should hire an inspector is identify damage to the property, obvious and unobvious.  Standard terms for handling repairs is in the purchase and sale agreement and should be read and/or revised carefully, and include deadlines for satisfaction of work done.

Q) Is there an age requirement for purchasing a home?

A) Legal age of 18 years is required in most states.  There is no age limit.

Q) Can a real estate agent be terminated for not doing a good job representing a buyer?

A) Yes, a termination agreement must be fully executed by the buyer.  If the purchase and sale agreement have been signed, an amendment and termination agreement must be signed by all parties.

Q) If I am relocating to another city, is a relocation service required?

A) No.  Relocation services are optional and usually work through employers.  Relocation services also charge a fee in addition to real estate commissions to the seller, and sometimes to the buyer.  In most cases, the relocation personnel may not be involved in any part of the transaction and get paid for the move only.  Find out how relocation services work before using them.  Contact a real estate office in the town you are relocating to for close personal service by mail, fax and internet prior to visiting.  This may allow the buyer and seller a major savings.

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