As the real estate market evolves, so do the questions buyers, sellers, and investors are asking. In 2024, people turn to Google for insights on everything from buying and selling processes to market trends and home financing. Below, we dive into the 15 most Googled real estate questions, offering clear and concise answers to help guide you through today’s market. This information is valuable for anyone interested in understanding real estate, especially for those looking to engage with realtors in Santa Fe or invest in real estate in Santa Fe, NM.
1. How much is my house worth?
One of the top questions is about home valuation. Understanding a property’s worth is essential for sellers and can also impact refinancing and tax assessments. Online tools like Zillow’s Zestimate provide estimates, but consult a local real estate agent for a more precise figure. An agent can assess your home’s unique features and location, which online tools might overlook.
2. Is now a good time to buy a house?
Market conditions can significantly affect the timing of a home purchase. With fluctuating interest rates and varying inventory, assessing the current economic climate and personal circumstances is essential. Buyers are encouraged to consult with financial experts or local agents for market insights specific to their area.
3. How do real estate commissions work?
Many people are curious about how agents get paid. Typically, sellers pay commissions to the agents representing both parties, with the total often ranging between 5% and 6% of the sale price. This amount is divided between the buyer’s and seller’s agents, although rates may vary by location and negotiation.
4. What credit score is needed to buy a home?
A strong credit score improves your chances of securing favorable mortgage terms. Generally, a score of 620 is considered the minimum for conventional loans, while FHA loans may accept scores as low as 580. Higher scores, however, often lead to better interest rates.
5. How long does it take to buy a house?
The process of buying a home usually takes between 30 and 45 days from accepted offer to closing. This timeline can vary due to factors like financing, inspections, and appraisals. Having pre-approval and working with a responsive team can help streamline the process.
6. What is a buyer’s market?
In a buyer’s market, there are more homes available than buyers, putting downward pressure on prices. This environment gives buyers more negotiation leverage. In 2024, some areas are experiencing a buyer’s market due to increased inventory and cautious buyer activity.
7. How do I start the home-buying process?
The first step to buying a home is getting pre-approved for a mortgage, as this determines your budget. Once pre-approved, consult a real estate agent to help identify suitable properties and guide you through the process of viewing and making offers.
8. What are closing costs?
Closing costs cover fees for finalizing a real estate transaction, including loan origination, title insurance, and taxes. These costs typically range from 2% to 5% of the loan amount. Budgeting for these fees is wise to avoid any surprises at the closing table.
9. Can I buy a house without a real estate agent?
While buying a house without an agent is possible, working with a professional offers numerous benefits. Agents provide access to listings, handle negotiations, and guide buyers through complex paperwork. An agent’s expertise can save time and prevent costly mistakes.
10. What is earnest money?
Earnest money is a deposit from the buyer that demonstrates serious intent to purchase a property. Typically ranging from 1% to 3% of the purchase price, this amount is applied to the down payment or closing costs if the sale goes through. If the buyer backs out without a valid reason, the seller may keep the earnest money.
11. How does a home inspection work?
Home inspections are a crucial part of the buying process, allowing buyers to identify potential issues before finalizing the purchase. A licensed inspector examines the property’s structure, systems, and other aspects during an inspection. The findings can influence negotiations or, in some cases, cause the buyer to reconsider.
12. What is an appraisal, and why is it important?
An appraisal is a professional assessment of a home’s market value conducted by a licensed appraiser. Lenders require appraisals to ensure the loan amount aligns with the property’s worth. If the appraisal is lower than the offer, buyers may need to renegotiate or cover the difference out of pocket.
13. How much should I offer on a house?
Deciding on an offer involves evaluating market conditions, the property’s listing price, and recent sales of comparable homes. Your agent can help assess the local market, guiding you on whether to make an offer at or below the asking price or if a higher bid is necessary in a competitive environment.
14. What is the difference between pre-qualified and pre-approved?
Pre-qualification is an initial assessment of your ability to borrow based on information you provide. Pre-approval, however, is a more thorough evaluation in which a lender reviews your credit report and finances. Pre-approval carries more weight during the buying process, giving sellers confidence in your offer.
15. How do I sell my house fast?
To sell quickly, focus on pricing your home competitively, staging it to highlight its best features, and making necessary repairs. Marketing strategies like professional photography and virtual tours can also attract more buyers. A seasoned real estate agent can advise on additional strategies specific to your local market.
About Ricky Allen, Cathy Griffith & Tara Earley Team
The Ricky Allen, Cathy Griffith & Tara Earley Team combines the strengths of three well-established real estate professionals who have built trusted reputations over time. The synergy of their collective expertise in the Santa Fe real estate market offers clients a unique advantage, from deep neighborhood knowledge to exceptional market insights. With each transaction, they strive to simplify the experience, as they understand the pressures that can accompany buying or selling a home, and work diligently to make each process smoother for their clients.
Ready to explore real estate in Santa Fe, NM? Contact the Ricky Allen, Cathy Griffith & Tara Earley Team today to begin the search for your dream home.
*Header image courtesy of Ricky Allen
