Frequently Asked Questions

Real Estate Questions, Answered by the Experts.

We’re bringing you straight answers from our experts, answered to address your inquiries directly.

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The period in which you can close a home varies. The home buying process can take approximately 3 to 6 months when you are preparing and looking for a home. You can close on a home within 45 days.

Most home sales involve the following 12 steps:

→ Decide Whether You’re Ready to Buy A Home.
→ Calculate How Many Houses You Can Afford.
→ Save For A Down Payment and Closing Costs.
→ Get Preapproved for A Mortgage.
→ Find the Right Real Estate Broker.
→ Begin House Hunting.
→ Make an Offer on A House.
→ Get A Home Inspection.
→ Get A Home Appraisal.
→ Ask for Repairs or Credits.
→ Do A Final Walkthrough.
→ Close on Your New Home.

Investing some time and effort upfront to prepare your house for showings will generally increase the likelihood of receiving offers soon after you list your home. The longer your home stays on the market, the harder it can be to sell.

Things like repairs, staging, and cleaning can help attract better offers, but they can also be a time-consuming and expensive process.

Your credit score plays a vital role in deciding the interest rate of your home. If you have a high credit score, it will represent that you are less risky to the lender and would result in a lower interest rate. If you have a low credit score, you may still be able to purchase without bringing in a higher down payment.

There is not rule on the number of homes you should view but if you have given your Realtor specific details of what you are looking for this will make your home search easier. However, there is no such rule. Only you know what is the best house for you and you’re family.

It is also known as good-faith money in the real estate world. It is usually 1-3% of the cost of the home. The earnest amount would be applied to the down payment on the house.

The Home Inspection period should be conducted within (5) days of the executed contract. During this period, if the buyer is not satisfied with the house’s condition, then he can ask for repairs to be completed or cancel the deal. Under this circumstance, he will receive the earnest money back.

Market conditions vary on the time it will take to sell your home. We will run a Comparative Market Analysis that will analyze price, market time, and the condition of every active closed and contingent property in your area against your home.

When making an offer you’re Real Estate Professional will pull comps that will give you an estimate of the amount you should offer. The market’s current situation would determine the room for negotiation.

It is a secured loan with a fixed interest rate and can be paid off within 15 to 30 years. Some sellers may even ask for a mortgage approval letter before they allow you to view their home. A mortgage is a type of loan that’s used to finance the property. A mortgage is a type of loan, but not all loans are mortgages. Mortgages are “secured” loans. With a secured loan, the borrower promises collateral to the lender in the event that they stop making payments. In the case of a mortgage, the collateral is the home.

A pre-qualification is a good indication of creditworthiness and the ability to borrow, but a pre-approval is the definitive word. The lender will then offer pre-approval up to a specified amount. Going through the pre-approval process also offers a better idea of the interest rate to be charged.

Every purchase or sale is different. Whether you should sell and buy at the same time can have its pros and cons. This can be a necessity for some buyers when they are transitioning to a larger home.

The assessed value of your house will not be the same as the market value. A public tax assessor calculates the assessed value of your home based on the taxation rate over the years. The assessed value of your home will not impact the price a potential buyer thinks your house is worth.

It is one of the frequently asked questions, and its answer may differ from real estate community to real estate community. In most cases, the spring and summer months are considered the best to sell the house. Many experts also suggest that during winter, home sale drops in the market.

To put it simply, title insurance is a way to protect yourself from financial loss and related legal expenses if there is a defect in the title to your property that is covered by the policy. Title insurance differs from other types of insurance in that it focuses on risk prevention rather than risk assumption. With title insurance, title examiners review the history of your property and seek to eliminate title issues before the purchase occurs. Title insurance also differs in that it comes with no monthly payment. It’s just a one-time premium paid at closing.” ~ Old Republic Title.

Do I need Title Insurance?

Absolutely. Title insurance is a way to protect what is likely your largest investment—your home. An Owner’s Policy provides peace of mind that your title company will stand behind you if a covered title issue or defect arises after buying your home.

Lender Title Insurance.

It is needed when selling your house to protect you from any claim made on the house.

Owner Title Insurance.

It is optional, but it would protect you from unforeseen concerns with the title of the home till the time you own the house.

A buyer’s market is the market condition in favor of the home buyer. The demands for the houses are low that results in pressure on the home sellers to reduce the price of the property. The factors that lead to the buyer’s market are higher trending interest rates, short-term drop-in interest rates, high inventory, and natural disasters.

A seller’s market is the market condition that is in favor of the home seller. The demands for the houses are high which leads to a high market price of the property.

The list price of the house is the price at which it is listed, and the sale price of the house is the amount at which it is sold to the buyer. Sometimes, the sale price of the house is lower than the list price.

Whether you should rent or purchase a home is your choice. Before you make a choice, study all the pros and cons of leasing vs. purchasing.

To determine the list price of your home, speak with a Real Estate Professional who can provide you with a Comparative Marketing Analysis for the sale of your home.

Tammy Jackson - Managing Broker in Chicago, Illinois at KM Realty Group LLC
Latrice Hamilton-Petty - Real Estate Broker in Chicago, Illinois at KM Realty Group LLC

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