October 5, 2018
Whether it’s a first-time home buyer looking to settle into their first house or someone who’s been through the system a couple times already, there will always be questions that need answering. The buying process is always stressful, but having the right information available from real estate experts can make things easier.
Home buyers are putting their trust in you as an agent or broker from the start, so being able to answer their questions, no matter how unique, will instill a high level of trust and transparency. Let’s look at some of the most common questions asked by buyers and consider the best possible answers.
Insuring Your Integrity
Before you start to answer questions that buyers may have, it’s important to answer one for yourself: are you insured? Having a vetted real estate insurance plan in place can protect against a number of liabilities in your profession. Real estate is a difficult business to operate in, so having the right protection in place will help to keep you protected in everything from finances to reputation.
Now, let’s look at some common questions from buyers.
1. What’s The First Step?
The best place to start is at the beginning. Home buyers should get a leg up on getting pre-approved for a loan. This will help to determine how much they can afford and what type of house is fit for their budget. Having a pre-approved limit set will help the seller take a buyer’s offer seriously if they know the they have taken the steps to know their limits.
2. How Can My Credit Score Impact A Loan?
When determining how much a buyer can afford and to consider whether or not they’re eligible for a home loan at all, a lender will look at their credit score. To qualify for a loan, a potential buyer needs to carry at least a 580 score, but it is recommended to have higher than that. The higher the credit score, the better the potential for alone and the better the lending terms they can be eligible for.
3. How Do I Search for a Home?
With the advent of social media and the push for more tailored technology, there is more access to home listings than ever before. But real estate agents and brokers can still step in and provide the right direction for potential buyers. From broadening or tightening the scope of what a buyer is looking for, a real estate professional can help to find a select number of options they may be interested in.
4. How Safe is the Neighborhood?
Probably the most important part of considering whether or not to buy a certain house, safety is a huge factor. Nobody wants to live in a dangerous part of town and real estate professionals should be educated on all neighborhoods in terms of relative safety. However, due to the Fair Housing Act, a real estate professional cannot answer questions regarding crime statistics.
5. How Much Do Real Estate Professionals Charge?
This is always an interesting question to answer, but still crucial. It’s always good for real estate agents and brokers to be upfront about what they charge. A standard commission is usually around 6% of the transaction and is split between the seller’s agent and the buyer’s agent.
6. Can a Sale Be Backed Out Of?
Buyers can always back out of a deal, but doing so without good reason may cause a forfeit of their earnest money, which is the cash put down to secure an offer. Loopholes like contingencies can work in a buyer’s favor to keep the earnest money. The buyer can ask for the deposit back or they can back out of a loan if the lender doesn’t think the property is worth what they offered.
About Associations Liability Insurance Agency (ALIA)
The ALIA Team (part of the Riverton Insurance Agency Corporation), specializes in helping real estate professionals find the affordable and comprehensive coverage they need, without the hassle. ALIA dates its roots to 1991 with the founding of FREA, Foundation of Real Estate Associates. In 2013, ALIA was created to work with multiple insurance companies thereby broadening the portfolio of products to customers. In 2017, ALIA was purchased by Riverton Insurance Agency Corp.