Questions to Ask a Realtor When Buying a Home

Purchasing a home represents a substantial financial and personal commitment. Navigating this complex transaction requires clear communication and a thorough understanding of each step. Engaging with a real estate agent, or realtor, demands asking pertinent questions to ensure you are well-informed and can make sound decisions. This proactive approach helps establish a strong foundation for a successful home acquisition.

Questions About Your Realtor’s Approach

Understanding a realtor’s professional background and how they conduct business is a first step. Inquire about their tenure in real estate and the number of buyer clients they have assisted. Some realtors specialize in certain market segments or property types, which may align with your specific needs.

Discuss their preferred communication methods, such as phone calls, text messages, or email, and their typical response time. Establish expectations for updates on new listings or market changes. Many realtors work with a support team; understanding who else might be involved, like administrative assistants or showing agents, clarifies roles.

A realtor’s compensation typically comes from a commission paid by the seller, a percentage of the final sale price split between agents. This commission often ranges from 2.5% to 3.0% for each agent. Confirming their status as a buyer’s agent is important, as this establishes a fiduciary duty to act in your best financial interests. Ask how they plan to understand your specific housing needs and preferences, including desired neighborhoods, property features, and budget.

Questions About the Home Search and Market

When beginning the home search, inquire how your realtor identifies potential properties beyond standard Multiple Listing Service (MLS) access. Some realtors know of off-market listings or leverage their network to find homes before they are widely publicized. Understanding current market conditions is important, as this influences buying strategies. For example, knowing if it is a buyer’s market (abundance of homes, less competition) or a seller’s market (low inventory, high demand) provides valuable context.

Realtors provide insights into the average time properties remain on the market and typical inventory levels. When considering neighborhoods, ask about local amenities, school districts, and planned future developments that might impact property values or lifestyle. The process for scheduling showings should be clear, including required notice and how many homes can be viewed. During showings, a realtor can offer guidance on features to prioritize and potential red flags, such as water damage, foundational issues, or outdated major systems.

To assess a property’s value, ask how the realtor determines a fair market price. They should provide a Comparative Market Analysis (CMA), which evaluates recent sales of similar homes to help formulate a competitive offer. This analysis considers factors like square footage, number of bedrooms and bathrooms, lot size, and overall condition to provide a data-driven valuation.

Questions About Offers and Negotiations

Once a suitable property is identified, the discussion shifts to crafting a compelling offer and navigating negotiations. Ask your realtor about the strategy for structuring a competitive offer, including the proposed purchase price, contingencies, and earnest money. Earnest money, typically 1% to 3% of the purchase price, is a deposit demonstrating serious intent to buy and is usually held in an escrow account until closing.

Understanding various contingencies is important, as these clauses protect the buyer. Common contingencies include financing (dependent on loan approval) and inspection (allowing professional evaluation). An appraisal contingency ensures the home’s value meets the loan amount, while a home sale contingency allows a buyer to sell their current home before finalizing the new purchase. In competitive markets, inquire about your realtor’s negotiation tactics, such as advising on escalation clauses or waiving certain contingencies, with careful consideration of risks.

After an offer is submitted, know the typical response times from sellers (often 24 to 48 hours) and how counter-offers are handled. If an inspection reveals necessary repairs, ask how your realtor will advise on requesting credits or repairs from the seller. Effective communication with the seller’s agent is important in negotiation; understand how your realtor plans to maintain clear and timely dialogue.

Questions About Due Diligence and Closing

The final stages of home buying involve due diligence and preparing for closing. Seek guidance on due diligence activities, starting with a comprehensive home inspection, which typically costs $300 to $600. An appraisal, typically $400 to $700, is conducted by a lender to confirm property value. A title search identifies any liens or claims against the property to ensure clear title transfer.

Realtors can recommend professionals, including home inspectors, lenders, and real estate attorneys, if legal representation is required in your state. Understand the timeline and milestones leading to closing, such as loan underwriting, appraisal completion, and inspection contingency duration. Inquire about what to expect during the final walk-through, which typically occurs within 24 hours of closing to verify the property’s condition and completed repairs.

The closing process involves signing documents, including the promissory note and deed of trust or mortgage, which legally bind the buyer to the loan and transfer ownership. Funds for the down payment and closing costs, generally 2% to 5% of the loan amount, are usually transferred via wire or cashier’s check. These costs include lender fees, title insurance, recording fees, and prepaid expenses like property taxes and homeowner’s insurance. Ask about post-closing responsibilities, such as transferring utilities and understanding property tax payments.