Questions and Answers for Home Buyers

You are bound to have questions about buying a home. Hopefully you are doing research well before your purchase and not in the middle of the process. Either way we have a few answers for you.

1. What is escrow?
   Money, property, a deed, or a bond put into the custody of a third party for delivery to a grantee only after the fulfillment of the conditions specified.

2. How long is the escrow period?
   It may be anywhere from 1 day to infinite days. Typically it is a set time based on the date of closing. It is likely close to 15, 30, 45, 60, or 90 days depending on your financial situation and your teams ability to close the deal.

3. When should I start looking?
   You will want to begin the process about 6 months out to stave off stress and inefficiencies later. Begin by finding an agent and figuring out what you need and want.

4. Where should I buy?
   Many factors determine this answer. You may have a job change, life style change, or reach a period of time like retirement or parenthood. Begin by researching cities and talking to families and friends about cities they have lived in.

5. Do I have to pay an agent?
   You may. Most often a seller will be responsible for paying both broker agents. It all depends on your market and the traditions of the brokers in the area. In any areas the buyer should be worried about closing costs as the seller establishes the pay for the agents.

6. What is a broker?
   Most agents work for someone called a broker. Government entities and boards establish rules for real estate transactions. There are levels of protection established for clients, agents, and other parties involved. A broker is the boss of an agent. In fact, your listing agreement will likely be with the broker even though you will be working with and hiring the agent. The broker owns your business. If something were to happen to the agent your purchase contract would still be in affect because the broker's company is the entity representing you.

7. What is an Earnest Money Deposit?
   Earnest money is a deposit attached to an offer to purchase real estate. Providing an earnest money deposit shows the seller that your offer is genuine. Not all offers need to have earnest money.

   If the offer is accepted, the earnest money is kept by the seller and subtracted from the purchase price, or is kept in escrow until closing, when it is applied to the buyer's portion of the closing costs. If the offer is rejected, the earnest money is usually returned. If the buyer retracts the offer, the earnest money is usually forfeited.

NOTE: Information on this site is not guaranteed to be accurate. Some content is compiled from 3rd party sources. If you are aware of incorrect or outdated information, feel free to contact us.