Real Estate FAQs
Real answers to questions buyers and sellers actually ask.
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Buying
How much money do I need to buy a house?
At minimum, plan for a down payment (3–20% of the purchase price), closing costs (roughly 2–5% of the loan amount), and earnest money (typically 1–2%). The total depends on your loan type, purchase price, and what you negotiate with the seller.
Financing
Should I get pre-approved before looking at homes?
Yes. Get pre-approved before you seriously start shopping. It tells you exactly what you can afford, makes your offers competitive, and protects you from falling in love with a home you can't buy.
Financing
What is the difference between pre-approval and pre-qualification?
Pre-qualification is a quick, unverified estimate of your borrowing capacity. Pre-approval involves actual verification of your finances and results in a letter that sellers take seriously. For homebuying, you need pre-approval.
Financing
How much should I put down on a house?
The minimum depends on your loan type: as low as 0% (VA/USDA), 3.5% (FHA), or 3–5% (conventional). Putting down 20% on a conventional loan avoids PMI, but most buyers put down far less and still buy successfully.
Buying
What is earnest money?
Earnest money is a deposit you submit with your offer to show the seller you're serious. It's held in escrow and applied toward your costs at closing. It's not an additional expense, just money you commit early.
Buying
What happens after an offer is accepted?
After acceptance, you're "under contract" and the formal process toward closing begins. Expect to submit earnest money, schedule a home inspection, go through the appraisal and loan underwriting, and prepare for closing in about 30–45 days.
Inspections
Do I really need a home inspection?
Yes. A home inspection is one of the most important steps in buying a home. You get a professional assessment of the property's condition, along with the information to negotiate or exit if something significant is wrong. The inspection fee is modest compared to what it can save you.
Appraisals
What happens if a home doesn't appraise?
If the appraisal comes in below the purchase price, you have three main options: renegotiate the price with the seller, bring extra cash to cover the gap, or walk away using your appraisal contingency.
Closing
What are closing costs?
Closing costs are the fees and expenses required to complete a real estate transaction, beyond the purchase price of the home. They typically range from 2% to 5% of the loan amount and are paid at the closing table by both buyers and sellers, though the specific split depends on the contract.
Buying
Can I buy a house while selling my current home?
Yes, people do it all the time, but it requires careful timing and planning. The main challenge is coordinating two transactions so you're not caught without a place to live or paying two mortgages at once.
Home Value
How much is my house worth?
Your home's market value is determined by what buyers are willing to pay, based on comparable recent sales in your area. Online estimates are a starting point, but a Comparative Market Analysis (CMA) from a local agent is a far more accurate picture.
Home Value
How does a Realtor determine home value?
Agents use a Comparative Market Analysis (CMA), pulling recent sales of similar homes from the MLS and adjusting for differences in size, condition, and features. It's part data analysis, part local market judgment.
Selling
What should I fix before selling my house?
Focus on safety issues, obvious deferred maintenance, and curb appeal. Skip major renovations, as they rarely return full value at sale. The goal is a clean, well-maintained presentation, not a gut renovation.
Selling
Should I renovate before listing my home?
Usually not. Major renovations rarely return their full cost at sale, and buyers often prefer to customize finishes themselves. Focus on maintenance, cleanliness, and curb appeal instead.
Home Value
How should I price my home for sale?
Price at or near market value based on a solid CMA. Overpricing is the most common and costly seller mistake. It leads to longer days on market, price reductions, and buyers wondering what's wrong with the home.
Selling
How long does it take to sell a house?
From listing to closing, a realistic timeline is 45–75 days, though it depends heavily on your market, price, and condition. The time on market before getting an offer varies widely.
Closing
Who pays closing costs, the buyer or the seller?
Both buyers and sellers pay closing costs, but different ones. Buyers typically pay lender and title fees; sellers pay real estate commissions and may pay the owner's title policy. What's negotiable depends on the contract.
Selling
What happens after I accept an offer on my house?
After accepting an offer, you're under contract. The buyer does their inspection and due diligence, the lender orders an appraisal, and all parties work toward a closing date, typically 30–45 days out.
Selling
Should I accept the highest offer on my house?
Not necessarily. The best offer is the one most likely to close on your terms, and that involves more than the purchase price. Financing strength, contingencies, and closing timeline all matter.
Inspections
What happens during a home inspection?
A licensed inspector examines the home's major systems and components (what's visible and accessible) and then delivers a written report. Inspection duration varies by property size, age, and complexity. Buyers are usually present; sellers should be out of the home.
Inspections
What does a home inspection cover?
A general home inspection typically covers the major visible and accessible systems and components of a property, including structure, roof, electrical, plumbing, HVAC, and interior areas. The exact scope depends on the inspection agreement and what can be accessed on the day of the inspection.
Inspections
What happens if a home inspection finds problems?
Finding problems during an inspection does not automatically end the transaction. Buyers typically have options, including asking questions, requesting repairs, negotiating a credit, seeking specialist evaluation, or exercising rights under the contract. The appropriate response depends on the severity of findings and what the purchase contract provides.
Inspections
Can I back out of a home purchase after an inspection?
Whether a buyer can exit a purchase after an inspection depends on the purchase contract, specifically whether an inspection contingency was included, what it provides, and whether applicable deadlines have been met. The contract controls. Review your actual purchase agreement with your agent and, when legal interpretation is needed, with qualified legal counsel.
Inspections
Should I get a termite inspection?
A general home inspection and a termite or wood-destroying insect (WDI) inspection are typically different services performed by different professionals. Whether a termite inspection makes sense depends on the property, your lender's requirements, what the general inspection reveals, and your own concerns as a buyer.
Inspections
How long does a home inspection take?
Home inspection duration varies based on the property's size, age, condition, complexity, and the scope of the evaluation. There is no standard duration that applies to every inspection. When scheduling, plan to block several hours and ask your inspector for an estimate based on the specific property.
Relocation
What should I know before moving to Huntsville?
Huntsville's market is competitive and moves quickly, especially for well-priced homes in popular areas. Come pre-approved, work with a local agent who knows the specific neighborhoods, and understand that good homes don't sit long.
Relocation
Should I buy before moving to Alabama?
It depends on your timeline, flexibility, and risk tolerance. Buying before you move allows you to settle in immediately, but requires strong local knowledge and readiness to act remotely. Renting first lets you learn the area before committing.
Relocation
Can I buy a house from out of state?
Yes, people do it regularly. The key is a trustworthy local agent who can be your eyes on the ground, thorough video tours, a serious home inspection, and understanding that you're making a big decision with some informational limits.
Relocation
How do I choose where to live in North Alabama?
Start with your non-negotiables: commute time, school district, budget, and lifestyle preferences. North Alabama's communities have distinct personalities and price points. Understanding those distinctions narrows the search considerably.
Relocation
What should I know about moving to Middle Tennessee?
Middle Tennessee, particularly Brentwood, Franklin, and the Nashville area, is a competitive, higher-priced market. Come prepared with strong pre-approval, a clear budget, and realistic expectations about what your money buys compared to other regions.
Contracts
Can I waive contingencies when buying a home?
Depending on the transaction and the contract, a buyer may be able to negotiate, modify, or waive certain contingencies. Doing so changes what happens if a specified condition isn't met and reduces the protections that would otherwise apply to the buyer.
Financing
What if I don't have a large down payment?
Not having a 20% down payment does not prevent you from buying a home. Down payment requirements vary based on the loan program, borrower qualifications, and other factors, and some programs allow significantly lower down payments for eligible buyers.
Financing
What should I do before getting pre-approved for a mortgage?
Before meeting with a lender, it helps to review your income, monthly debts, and overall financial picture. Gathering commonly requested documentation in advance and thinking through a comfortable monthly payment range makes the process more productive.
Buying
How long does it take to buy a home?
There's no fixed timeline. The search period varies by buyer, from weeks to months. Once you have an accepted offer, a financed purchase typically takes 30–45 days to close, though that window can expand or compress depending on the transaction.
Closing
How much are closing costs?
There isn't one number that applies to every buyer. Your closing costs depend on the property, loan, location, services involved, and the terms of your transaction. More importantly, the amount you pay out of pocket isn't necessarily the same as the total closing costs shown on an estimate. Depending on the circumstances, negotiated seller concessions, lender credits, and other permitted options may reduce what you need to bring to closing, potentially to very little, or even $0 in some transactions.
Closing
Can a seller pay the buyer's closing costs?
Yes. In many transactions, a seller can agree to contribute toward the buyer's closing costs as part of the purchase contract. This is called a seller concession. The amount and what it can cover depends on the loan program, the lender, and how the transaction is structured. It's one of several tools that can help reduce what a buyer needs to bring to closing.
Closing
What fees are included in closing costs?
Closing costs include fees from multiple sources: the lender, the title company, the government, and various third-party service providers. The exact fees vary by transaction, loan type, property, and location. No two closings are identical, but understanding the major categories helps you know what to expect.
Closing
Can closing costs be negotiated?
Yes. Many parts of a real estate transaction are negotiable, and closing costs can be part of that conversation. What's negotiable, and how much flexibility exists, depends on the transaction. Understanding where the leverage is and how to use it is one of the most valuable things an experienced Realtor brings to the table.
Closing
When do I pay closing costs?
Closing costs are paid at, or just before, the closing date. The final amount is confirmed on the Closing Disclosure, which buyers receive at least three business days before closing. Funds are typically due by wire transfer or cashier's check, as directed by the closing professional handling your transaction.
Closing
Can closing costs be rolled into a mortgage?
"Rolling closing costs into a mortgage" can mean different things depending on how the transaction is structured. In some loan programs and circumstances, certain costs can be addressed through financing, but not every closing cost can simply be added to a loan balance. Whether and how this works depends on the loan type, lender, property value, and transaction structure. Your lender is the right source for what's available in your situation.
Home Value
Is Zillow's home value estimate accurate?
Zillow's estimate can be a useful starting point, but it's generated by an algorithm working from public data, not from a walk-through of your home. How closely it reflects your home's actual market value depends on your local market, data availability, and property-specific factors an algorithm can't assess.
Home Value
What is a CMA?
A CMA (Comparative Market Analysis) is a Realtor's analysis of relevant sold properties and current market conditions used to estimate a home's potential market value and inform a pricing strategy. It's not a formal appraisal, and it's typically provided as part of a listing consultation.
Home Value
Is market value the same as appraised value?
Not necessarily. Market value is an informed estimate of what a property may reasonably command in the current market. Appraised value is the conclusion a licensed appraiser reaches as part of a formal appraisal assignment. The two can align closely or diverge, depending on the property and current market conditions.
Home Value
Should I price my home higher to leave room for negotiation?
There's a meaningful difference between a price grounded in current market evidence and a price set substantially above that evidence to create negotiating space. The second approach can affect how many buyers engage with your listing, how quickly showings occur, and how strong your negotiating position actually is when offers come in.
Home Value
What happens if my home is overpriced?
When a home is priced above what the market reasonably supports, buyer interest tends to be limited. Buyers searching in a price range expect to see properties that compete well at that price. A home that doesn't align with those expectations often sees fewer showings and fewer opportunities for offers to develop.
Home Value
When should I consider a price reduction?
There's no universal number of days that should automatically trigger a price adjustment. The more useful question is what the market is telling you through showing activity, buyer feedback, competing listings, and offer activity. Days on market is one data point, not the only one.
Closing
What is the difference between closing costs and cash to close?
Closing costs are the total fees and charges required to complete a real estate transaction. Cash to close is the amount a buyer actually needs to bring to the closing table on closing day. These two numbers are related but not the same. Cash to close combines the down payment with closing costs, then adjusts for any credits, seller concessions, lender contributions, and deposits already paid.
Closing
Can closing costs really be $0?
The total closing costs in a real estate transaction are real fees that belong to the deal, and they do not simply disappear. But what a buyer personally pays out of pocket can, in certain transactions, be substantially lower than the total amount. Depending on the loan program, seller concessions, lender credits, and how the transaction is structured, some buyers may potentially have very little or even $0 in costs paid personally at closing. This is not guaranteed, and it does not happen in every transaction.
Closing
Can a lender credit reduce my closing costs?
Yes. A lender credit is an amount your lender contributes toward your closing costs in exchange for accepting a slightly higher interest rate on the loan. It can reduce, and in some cases potentially eliminate, the closing costs you pay out of pocket at closing. Whether it makes sense depends on your timeline and the specific numbers your lender provides.
Closing
Can I negotiate closing costs after the home inspection?
The inspection period can open a second negotiation window in many transactions. Depending on what the inspection reveals and what your contract allows, you may be able to request repairs, a price reduction, or a closing credit based on inspection findings. A closing credit effectively reduces what you bring to the table at closing.
Closing
How much money will I actually receive when I sell my home?
What you receive is your net proceeds: the sale price minus your mortgage payoff, seller closing costs, agent fees, any seller concessions, and other adjustments. Net proceeds can differ significantly from the sale price depending on your loan balance, what the market supports in terms of fees, and what you negotiate in the contract.
Closing
What is a Closing Disclosure?
The Closing Disclosure is a standardized document your lender provides at least three business days before closing. It shows the final loan terms, projected monthly payment, all closing costs line by line, and the exact cash-to-close amount. It is the document that confirms every financial detail of the transaction before you sign.
Closing
Are closing costs separate from the down payment?
Yes. Closing costs and the down payment are two different amounts, but both are part of what you bring to closing. The down payment goes toward the purchase of the home and reduces your loan balance. Closing costs cover the fees required to complete the transaction. Together, after any credits and adjustments, they make up what is called your cash to close.
Still have questions?
Bri is happy to walk you through your specific situation, whether you are buying, selling, or just exploring what your options are.