Most Commonly Asked Question by Home Buyers
Questions about home buying are the same but the answers aren’t.
It’s a cliché, everyone has yearly plans and New Year’s resolutions. How many times have you included in your plan to be a homeowner but ended up erasing it off from your list because you were never able to go on the process of home buying? Whether it’s due to a busy schedule or you do not know where to start, it’s always best to take the first step.
In reality, you can walk right to an open house any time of the year and start building ideas in your head either for your first or your next home to buy. Having been a realtor for more than 15 years, there are (a lot of ) common questions I hear from potential home buyers but the answers are not the same. Yes, answers do vary depending on each buyer’s situation. These are the question I usually get asked most of the time.
1. “Should I start looking for home or talk to the bank first?”
A very good question, the buyer sounds determined to be successful in home buying. The best answer would be, “Talk to the bank first and understand how much you can afford.” The reality of wanting to afford a house offered at $400k hits you real when you learn from the bank that you can only afford $290k. That way, you know your purchasing power and you can start looking for a property to purchase within that range.
Some house hunters won’t settle to their current reality and still go for what they really want, especially if they have ideal type of house they have envisioned. This is what we call perseverance and I usually encourage them and after, ask what they plan to do to meet the property valued at $400k. Most of them know they need to save more or get a lender. Which, both are options I usually advice my home buyers. And in this situation, we see why realtors should be present from house hunting until after closing. Realtors can guide you and once they know you’re saving to go for that house or applying to get a good credit score. They would still call you to check on you and update you with the current market situation.
2. “When should I start looking for houses?”
House hunting isn’t as easy as driving thru at your favorite fast food chain and getting the usual meal that comforts you. You can start house hunting the moment you knew where you’d want to stay whether it’s a short term or long term plan. Buying a house takes a lot of time- you may be spending your free hours browsing online and looking for listing. Sure it’s fun to look around and check the photos. And you may also be spending (a lot of) your weekends house hunting with your realtor. I suggest that you tell your agent right away what type of house you’re looking for, any specific location. These things will help you and your agent to get the right property for you fast.
3. “What can we expect around town?”
As a realtor, I can say as much with the things going around town and what it’s typically like to live here in Minnesota. Agents like me can do all the talking, but we want to show you that you can trust us. So it’s best to check online as well, to fact check everything. At the same time, you’ll get to know more about the location, the home type, price, house condition, size and amenities.
4. “How much do I have to pay for the commission?”
This is what usually gets in the way of going through the process of house hunters. I know house hunters think it’s going to cost a lot of money paying their agent. The deal with it is, the home seller pays their realtor a percentage of the home sale price. The home seller’s agent pays the buyer’s real estate agent for bringing in the buyer. Simply put it this way, they split the commission.
Real estate is a big market, there’s always a house to sell and people who are house hunting. As a realtor, I show houses that best matches what my customers want. If you’re planning to buy a house in Minnesota, someone who can walk you through the process of buying your first home or move-up home, please call/text me, Phong Cao.
References:
Kyle Hiscock, Kyle Hiscock | Re/Max Realty Group. “Top Frequently Asked Questions From Home Buyers” Rochester Real Estate Blog,
Fulger, Jean. “10 Investigative Questions to Ask a Home Seller” Investopedia, Updated June 28, 2021
Minnesota Real Estate Team. “Buy Houses in Minneapolis St. Paul & Minnesota” ReMax Advantage Plus
Thatcher, Alex. “10 Most Common Questions Real Estate Agents Are Asked” Homes.Com 13, Nov. 2015