Here are some of the **most frequently asked real estate questions**, along with concise answers to help buyers, sellers, and investors:
### **For Buyers**
1. **How much house can I afford?**
- Lenders typically recommend spending no more than **28-36% of your gross income** on housing. Use a **mortgage calculator** to estimate based on income, debt, and down payment.
2. **What’s the difference between pre-qualification and pre-approval?**
- **Pre-qualification**: A rough estimate based on self-reported finances.
- **Pre-approval**: A lender verifies your credit, income, and assets, giving you a stronger buying position.
3. **How much should I put down on a house?**
- Conventional loans usually require **5-20% down**, but FHA loans allow **as low as 3.5%**. A **20% down payment** avoids private mortgage insurance (PMI).
4. **What are closing costs, and how much are they?**
- Typically **2-5% of the loan amount**, covering fees like appraisal, title insurance, and taxes.
5. **Should I buy now or wait for prices to drop?**
- Market timing is difficult. If you find a home you love and can afford, buying sooner may be better than waiting for uncertain price drops.
### **For Sellers**
6. **How do I determine my home’s value?**
- A **comparative market analysis (CMA)** from a realtor or an **appraisal** provides the most accurate estimate.
7. **What repairs should I make before selling?**
- Focus on **curb appeal, minor fixes (paint, leaks), and kitchen/bath updates**—major renovations don’t always pay off.
8. **How long will it take to sell my house?**
- Depends on the market, but the **average is 30-60 days** (faster in hot markets, slower in buyer’s markets).
9. **Do I need a real estate agent to sell?**
- While **FSBO (For Sale By Owner)** is an option, agents help with pricing, marketing, and negotiations, often securing a **higher sale price**.
10. **What’s the best time to sell?**
- **Spring and early summer** are peak seasons, but low inventory in winter can also attract serious buyers.
### **For Investors & General Questions**
11. **Is real estate a good investment?**
- Real estate can provide **cash flow, appreciation, and tax benefits**, but it requires research and management.
12. **What’s the 1% rule in rental properties?**
- Monthly rent should be **at least 1% of the purchase price** (e.g., a $200K home should rent for $2,000/month).
13. **What’s the difference between a buyer’s and seller’s market?**
- **Buyer’s market**: More homes for sale, lower prices.
- **Seller’s market**: High demand, low inventory, higher prices.
14. **How do I negotiate the best deal?**
- For buyers: **Get pre-approved, research comps, and be flexible on closing dates**.
- For sellers: **Price competitively, highlight upgrades, and consider incentives**.
15. **What are the biggest mistakes to avoid?**
- Buyers: **Skipping inspections, overextending budget**.
- Sellers: **Overpricing, neglecting repairs**.
- Investors: **Underestimating expenses, not screening tenants**.
.jpg "roby robertson")
