Top 20 Common Real Estate F&Q

Ans: When choosing a real estate agent, look for someone who is experienced, knowledgeable, and has a good reputation. Ask for references and check online reviews. It’s also important to find an agent who is a good communicator and who understands to your needs.

Ans: A buyer’s agent is a real estate agent who exclusively represents the buyer in a real estate transaction. They work to find the right property for the buyer and negotiate the best deal on their behalf. They can also offer advice and guidance throughout the home-buying process.

Ans: A seller’s agent is a real estate agent who exclusively represents the seller in a real estate transaction. They work to market the property and find potential buyers, negotiate offers, and guide the seller through the home-selling process.

Ans: Earnest money is a deposit made by the buyer to show their commitment to purchasing the property. The amount of earnest money varies, but it is typically 1-3% of the purchase price. It is important to note that if the deal falls through, the seller may be entitled to keep the earnest money.

Ans: A contingency is a clause in a contract that allows the buyer to back out of the deal if certain conditions are not met, such as a failed home inspection or failure to secure financing. It is important to include contingencies in your offer to protect yourself from potential financial losses.

Ans: Closing costs are fees associated with the purchase of a property, such as title insurance, appraisal fees, and lender fees. Both the buyer and seller are responsible for paying certain closing costs.

Ans: The amount of the down payment depends on several factors, including the purchase price of the property, your credit score, and the type of mortgage you qualify for. Generally, a down payment of 20% of the purchase price is recommended, but there are options for lower down payments.

Ans: A pre-approval letter is a document from a lender that shows how much money you are pre-approved to borrow. It is important to get pre-approved before starting your home search to ensure that you are looking at properties within your budget.

Ans: A title search is a process to determine if there are any liens, judgments, or other issues with the property’s title. It is important to do a title search before buying a property to ensure that you have a clear title and to avoid any legal disputes down the line.

Ans: A home warranty is a service contract that covers repairs or replacements of major home systems and appliances. While it is not required, a home warranty can provide peace of mind and protect you from unexpected expenses.

Ans: A lease agreement is a legal document that outlines the terms of a rental agreement between a landlord and a tenant. 

* Names and addresses of the landlord and tenant.
* Description of the property being rented, including the address and any specific terms regarding its use.
* Start and end dates of the lease period.
* Rent amount and payment terms, including the due date and any late fees.
* Security deposit amount and terms of return.
* Responsibility for utilities and other expenses, such as maintenance or repairs.
* Rules and regulations for the property, such as noise restrictions, smoking policies, and pet policies.
* The process for renewing or ending the lease agreement.

Any specific provisions for early termination, subletting, or assignment.
Information on how to handle disputes or issues that may arise during the lease period.
Signatures of both the landlord and the tenant, along with the date the lease agreement was signed.

Ans: A buyer’s agent represents the buyer in a real estate transaction, while a seller’s agent represents the seller. It’s important to note that a seller’s agent has a legal obligation to get the best deal for the seller, while a buyer’s agent has a legal obligation to get the best deal for the buyer.

Ans: A home inspection is a thorough examination of a property’s condition, including the foundation, roof, electrical and plumbing systems, and more. It is important to get a home inspection before buying a property to ensure that there are no major issues or defects that could cost you money down the line.

Ans: The steps in the home buying process can vary, but generally include: getting pre-approved for a mortgage, working with a real estate agent to find the right property, making an offer, negotiating the terms of the contract, getting a home inspection, securing financing, and closing on the sale.

Ans: The steps in the home selling process can also vary, but generally include: preparing the home for sale, setting a price, listing the property with a real estate agent, marketing the property, accepting offers, negotiating the terms of the contract, completing a home inspection, closing on the sale, and transferring ownership of the property.

Ans: A home equity loan is a type of loan that allows homeowners to borrow against the equity in their property. The loan is secured by the home, and the funds can be used for various purposes.

Ans: A 1031 exchange is a tax-deferred exchange that allows investors to sell one property and purchase another without paying capital gains taxes on the sale. It requires strict adherence to IRS guidelines and the use of a qualified intermediary.

Ans: Financing options for rental properties include conventional mortgages, portfolio loans, and commercial loans. Consult with a lender to determine the best option for your specific situation.

Ans: A fixed-rate mortgage has a set interest rate for the life of the loan, while an adjustable-rate mortgage has a fluctuating interest rate that can change periodically.

Ans: A HELOC is a revolving line of credit that allows homeowners to borrow against the equity in their property. It is similar to a credit card, with a limit based on the home’s value and equity.