Frequently Asked Questions

13 important questions that sellers and buyers ask real estate agents over and over again. Please take a moment to see which ones are important information for you.

Buyers FAQs

Many people believe they can save a considerable amount of money by selling on their own. They look at the average commission on a house and remember stories of friends or relatives who managed to get through the process with seemingly little trouble. “People sell their own homes, so why can’t I?”

Right now, over 10% of American households handle their own sales. But in order to join the rank of the successful ones, you need to realistically assess exactly what’s involved. The routine parts of the job involve pricing your house accurately, determining whether or not a buyer is qualified, creating and paying for your own advertising, familiarizing yourself with enough basic real estate regulations to understand a real estate contract, and coordinating the details of a closing. The greatest downsides are the fact your house is only on the market when you are home, and the possibility that a mistake may cost you the money you are trying to save.

According to the National Association or Realtors (NAR), nearly 40% of all real estate transactions that do not involve a real estate agent end up in small claims court or higher up in the court system. It is critical for sellers to fully understand the full contingent of real estate laws and the rights’ of buyers.

The best reason for working with real estate brokers is the enormous amount of information they have at their disposal – information that can help your house sell easier and faster. Professionals know about market trends, houses in your neighborhood and the people most likely to buy there. They also know how to reach the largest number of people who may be interested in your house, and are trained in areas like screening potential buyers and negotiating with them. Finally, they are “on call” and willing to do the things most of us hate: working on the weekends, answering the phones at all hours and always being polite about it.

According to the National Association of Realtors (NAR), sellers that sell their house on their own sell their house at 91% of the original list price (think of it as an average 9% discount). In today’s real estate market, the average total commission paid by the seller to the both real estate brokers (representing the buyer and seller) is 5-6%. According to the NAR, sellers that hire a licensed real estate agent sell their house at an average of 96% of the original list price. In most cases, the statistics show sellers end up with more net proceeds by using a licensed real estate agent instead of selling on their own.

3. How long should it take to sell a house? (Back to Top)

Average listing times vary from 30 to 180 days, according to market conditions in a particular region, town or even neighborhood: and of course price, terms, condition, location and exposure play an even greater role. Selling in any market is easier if you keep time on your side. Most professionals will tell you that allowing yourself six months will put you in a position to get a better return from their marketing efforts.

4. How do I price my house? (Back to Top)

In a word, realistically. Today’s residential real estate market is no place to look for unrealistic profits. That’s not to say you can’t get what your house is worth. You just have to be realistic about its value, and price it accordingly. A good place to start is by determining fair market value.  Simply put, fair market value of a house is the highest price an informed buyer will pay, assuming there is no unusual pressure to complete the purchase. To get an estimate of the fair market value, call a local real estate agent and ask for a Competitive Market Analysis (CMA) of your house. Most real estate offices will offer this service free of charge, without obligation. The agent’s opinion is often very helpful in determining the right asking price.

Unless your house is nearly new, chances are you’ll want to do some work to get it ready to market. The type and amount of work depends largely on the price you’re asking, the time you have to sell, and of course, the condition of the house.

If you are in a hurry to sell, do the “little things” that make your house look better from the outside and show better inside. Here are a few suggestions that are time tested and help sell your house more quickly at a higher value:

6. Why list my house with an ERA broker? (Back to Top)

Exclusive services that can make selling your house faster and easier, unparalled expertise in local and national markets – those are some of the reasons why no one can sell your house more effectively than an ERA broker.

Some brokers offer guaranteed sale plans, which are essentially a written promise to buy your house at a predetermined price if it doesn’t sell by a certain date. The amount of the guaranteed sale varies considerably between brokers.

If you opt for the guaranteed sale route, look into the ERA Seller Security Plan. It’s the only guaranteed sale plan offered in all 50 states. You’ll sleep better knowing your ERA broker has the financial strength to full the terms of the plan. “We Will Sell Your House, or ERA Will Buy It!”

7. What are the advantages of using a real estate agent to help me buy a home? (Back to Top)

Buying a home is certainly one of the most rewarding experiences most of us ever have; it’s also one of the most challenging. If you’re buying for the first time, the process may even seem overwhelming. And even if you have been through it several times, every move is different and presents new challenges. One clear advantage of enlisting the help of an agent is simply that you don’t have to “go at it alone.”

 A good agent has the training, the know-how and the experience to help you through each step of the process of finding, buying and moving into your new home as smooth, quick and enjoyable as it can be. Another advantage is that an agent represents a valuable source of information about market trends, communities and neighborhoods, and especially homes for sale throughout the area. Remember not every home seller runs an ad in the local newspaper or puts a sign in the yard. In fact, many homes actually sell before there is ever a need to advertise them. An agent offers you market expertise augmented by access to complete, regularly updated information about every home listed by area agents through the Multiple Listing Service (MLS). Professional expertise and services can be of considerable help throughout the buying process.

8. How do I find the right agent to work with? (Back to Top)

The key word here is right. While there’s certainly no shortage of qualified agents to choose from, it is important that you find one who can fully understand your wants, needs and individual tastes and who’s personal and professional judgment you respect. You should be presented with a disclosure agreement by an agent before any working relationship between the two of you is created. That agreement explains what a buyer’s agent is and does. It is very important to remember that real estate firms are governed by state laws and disclosure laws. Above all, look for someone who makes you feel comfortable.

9. How do I know for sure how much home I can afford? (Back to Top)

Affordability is probably the single biggest concern of today’s first time home buyers. A good agent is committed to honestly and responsibly working with you to determine your affordable price range. There are many financing options available today and some include low down payments. Your agent will help you find an option that fits your budget and you may be surprised at just how much home you can afford.

Most sellers require buyers to be pre-approved prior to accepting and considering a buyers’ offer on their house. This process is vitally important and helps define your purchasing power based upon your credit history and scores. It’s best to do this up front to prevent you from being disappointed when you find a home you really want to buy.

10. How does buying compare to renting? (Back to Top)

Renting offers a lifestyle that’s nearly maintenance-free. That may appeal to you, but consider that renting offers no equity, no tax benefit, and most likely no protection against regular rent increases.

If your rent has averaged $1,250 a month for the past 10 years, you have spent $125,000 with nothing to show for it. Isn’t it time you invested in yourself instead of your landlord?

Certain municipalities, counties and government agencies offer low interest loans or incentives for first time buyers that qualify for these programs. There are viable interest only loans and other financing options that allow buyers alternatives to buy their first home. In addition to tax deductions that you will likely receive that can partially offset the cost of real estate taxes, insurance and home maintenance, your home should appreciate in value. And thanks to changes in the tax code, up to a gain of $250,000 (if you are single) and up to a gain of $500,000 (if you are married and file your taxes jointly) is exempt from federal and state taxes if you live in the property for a minimum of 24 months. It makes financial sense to become a home owner if you can qualify.

11. How can I find out what homes are selling for in a given neighborhood? (Back to Top)

In most areas, home sales are a matter of public record. You can get all the information you want by calling the County Recorder of Deeds. An easier way is to ask your real estate agent. If you are interested in a particular home, an agent may be able to provide you with a list of comparables – sale prices of homes in your area that are roughly the same size and age as the home you are considering. Although there may be some differences between the homes – the house next door may have an extra bedroom, or the one down the street may be older than the one you are looking at.  It is a good way to evaluate the seller’s asking price and ask your real estate agent for their opinion and help in any negotiations. Their knowledge and expertise of real estate markets are a good source of valuable information in the decision making process.

12. What should I tell the agent I am working with about the homes I look at? (Back to Top)

Tell the agent everything you liked and didn’t like about each home you see. Don’t be shy about a home’s shortcomings. Is the home too small for your needs? Let the agent know. Was the home perfect except for the carpeting? Let the agent know.

Remember that the real estate agent is frequently working for and paid by the seller. In addition, agents working for the seller may also report any confidences you share to the seller – including any willingness to pay a higher price should the seller not accept your initial offer(s). This is why you may want to be represented by a buyer’s agent because he / she will keep you input confidential. A buyer’s agent put the interests of the buyer – not the seller – first.

 13. How do I determine the amount of my initial offer? (Back to Top)

There is no particular rule to use in calculating a realistic offer. Naturally, the buyer wants the best value and the seller wants the best price, but negotiations can be influenced by many factors, such as a seller who may be changing jobs and who wants to sell quickly, or a buyer who really wants a specific home. Market conditions can fluctuate from a seller’s market to a buyer’s market and vice versa. The inventory of available houses for sale and the trend in mortgage interest rates are also key market influencing factors.

After you have looked at a home’s features, asked questions, checked comparable properties for sale and talked with your agent about it, you should have a good idea of what the home’s value is in the current market. Consider what you can afford and make an offer that you consider is fair. Many first time buyers do not have the experience to be comfortable making this decision, especially if they are “stretching” their finances to buy the home they are considering. Your agent’s experience and market knowledge can be relied on to help you determine a fair offer price.

Most buyers and sellers negotiate on price, with both sides giving a little until both agree on a final purchase price. Always make certain all offers, counteroffers and the final agreed to price are signed by both buyer(s) and seller(s).