Buyer FAQ
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What is the first step to buying a home?
See an indepth look at the home buying process here. -
Should I get pre-qualified or pre-approved first?
Start with prequalification—it’s a quick, informal estimate of how much you might be able to borrow, based on basic financial information you provide.
Once you're serious about buying, move on to preapproval, which is more in-depth and involves a credit check, income verification, and documentation. A preapproval letter shows sellers you're a serious, qualified buyer and strengthens your offer.
In short:
- Prequalification = early estimate
- Preapproval = verified buying power
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How much money do I need for a down-payment?
The amount you need for a down payment depends on the type of loan and the home's purchase price. Typically:
- Conventional loans require 3% to 20% down.
- FHA loans require a minimum of 3.5% down.
- VA and USDA loans may offer 0% down for qualified buyers.
For example, a 10% down payment on a $300,000 home would be $30,000. Keep in mind, you'll also need to budget for closing costs, which are usually an additional 2%–5% of the home price.
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What documents do I need to provide for pre-approval?
- Personal Identification (such as a driver's license)
- Social Security Card/Number
- Pay Stubs
- Bank Statements
- Tax Documents, including W-2’s, tax returns, and other tax related documents
- Investment Account Statements
- List of Monthly Debts
- Rental information
- Landlord Reference
- Gift Letters
- Credit Report
- If you’re self-employed, you may be asked to provide additional documents
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Who pays for the real estate commission?
Real estate agents work on a commission basis, making a percentage of the sale or purchase price of the home their client is buying or selling. Although negotiable, typically the seller will pay a percentage of the sale price, with half of the total serving as the buyer agent’s commission.
Seller FAQ
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What is home staging and is it necessary?
Home staging involves preparing and decorating your home to appeal to buyers. While not required, it can significantly reduce time on market and increase offers. -
What repairs or improvements should I make before listing?
Minor repairs and cosmetic improvements can boost your home’s value and appeal. After we walk through your house and discuss the listing price, we can help you come up with a plan for repairs if necessary! -
Who pays for the real estate commission?
Real estate agents work on a commission basis, making a percentage of the sale or purchase price of the home their client is buying or selling. Although negotiable, typically the seller will pay a percentage of the sale price, with half of the total serving as the buyer agent’s commission. -
When is the best time of the year to sell?
This varies depending on the housing market. In general, house hunting typically picks up in the warmer months of the year, making it a great time for sellers to put their home on the market. In the colder months, it’s typically a buyer’s market. This can vary by city and even neighborhood. -
How to choose the listing price?
Choosing the right listing price is critical to attracting buyers and selling quickly. We will perform a Comparative Market Analysis (CMA) to evaluate recent sales of similar homes in your area, local market trends, and your home's condition and features.
Factors to consider:
- Location (school district, neighborhood appeal)
- Market conditions (buyer’s vs. seller’s market)
- Upgrades and repairs made to the home
- Days on market for similar listings
Overpricing can lead to fewer showings and longer time on the market, while pricing competitively often attracts more interest and stronger offers.
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What is a 1031 exchange?
A 1031 Exchange—named after Section 1031 of the IRS code—is a tax-deferral strategy that allows real estate investors to sell an investment property and reinvest the proceeds into another like-kind property without immediately paying capital gains taxes. This can be a powerful tool for building long-term wealth and growing your real estate portfolio.
You may be eligible to do a 1031 exchange, and we can put you in touch with trusted companies who assist with these types of transactions to ensure everything is handled properly and within IRS guidelines.
If you're considering this strategy, let us know—we’re happy to help connect you with the right resources!