real estate faqs

The “right time” is less about perfect market timing and more about your personal timing.

If your current home no longer fits your lifestyle – whether you need more space, want to downsize, relocate, or invest – that’s usually your signal.

For buyers, it comes down to financial readiness (stable income, manageable debt, and a clear idea of your budget). For sellers, it’s about your goals – maximizing return, freeing up equity, or making a life change.

Markets rise and fall, but strong real estate decisions are made when your life and finances align, not just when interest rates look appealing.

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The first step is getting clarity on your goals – and then connecting with a real estate professional to outline your path.

If you’re buying, that usually means speaking with a lender for a pre-approval so you know exactly what you can afford.

If you’re selling, it starts with a comparative market analysis (CMA) to understand your home’s value and what buyers are looking for in your area

Once you know your numbers and your timeline, your agent can help you create a strategy that fits your life and market conditions.

It varies, but here’s a general idea:

• Buying: Most buyers spend 2 – 6 months from the start of their search to closing. Pre-approval, showings, and negotiations take time, and the closing process itself typically lasts 30 – 45 days once you’re under contract.
• Selling: Preparing, listing, and marketing your home may take 2 – 4 weeks, and once you accept an offer, closing is usually 30 – 60 days.

Every situation is different – location, loan type, and market activity all play a role – but a realistic plan helps you stay on track.

There are costs on both sides of a transaction, and knowing them upfront helps you plan.

For Buyers:

• Down payment: Typically 3% – 20% of the purchase price, depending on your loan.
• Closing costs: Usually 2% – 5% of the purchase price (covers lender fees, title insurance, taxes, and more).
• Home inspection & appraisal: Around $500 – $1,000 combined.
• Ongoing costs: Homeowners insurance, property taxes, and utilities.

For Sellers:

• Agent commission: Generally 5% – 6% of the sale price, split between buyer and seller agents.
• Closing costs: 1% – 3% (title fees, transfer taxes, potential concessions).
• Preparation costs: Cleaning, repairs, staging, and minor updates to maximize appeal.

Your agent or lender can provide a more precise estimate once you have a property or price range in mind.

If you’re buying – yes, absolutely. Getting pre-approved before you start shopping helps you:

• Understand exactly what you can afford
• Strengthen your offer when you find the right home
• Move faster in a competitive market

A pre-approval doesn’t lock you into a lender; it just gives you a financial foundation and realistic budget.

If you’re selling, it’s smart to talk to a lender too – especially if you plan to buy again. Understanding how your equity, mortgage payoff, and new financing options line up can make your transition much smoother.

The short answer: usually between 3% and 20% of the purchase price – but it depends on your loan type and financial profile.

• Conventional loans: often 5%–20% down
• FHA loans: as little as 3.5% down
• VA and USDA loans: may allow 0% down for qualified buyers

A larger down payment can lower your monthly mortgage and help you avoid private mortgage insurance (PMI), but it’s not always necessary. The best amount is what keeps you comfortable – with enough left over for closing costs, moving, and your emergency savings.

These sound similar but carry very different weight:

• Pre-qualification is an estimate based on self-reported financial information. It gives you a general idea of what you might afford.
• Pre-approval is a verified review by a lender, based on your actual credit, income, and debt. It’s essentially a green light showing sellers you’re serious and capable of buying.

In a competitive market, pre-approval is the one that matters – it can make your offer stand out and move the process faster once you find the right home.

Once you’ve found a home that feels right, a few key steps follow quickly:

1. Your agent prepares and submits an offer based on recent comparable sales and your strategy.
2. Negotiations may follow until both sides agree on price and terms.
3. Once accepted, you’ll go under contract – meaning the seller has formally agreed to sell to you (pending conditions like inspection and financing).
4. You’ll then schedule your home inspection, finalize your loan, and start the appraisal process.
5. From there, your agent and lender guide you through to closing day.

This period – typically 30 to 45 days – is where teamwork, communication, and staying organized make all the difference.

Yes – you can (and should) negotiate. The right offer depends on a mix of market conditions, comparable sales, and your comfort zone.

• In a buyer’s market, you may have room to come in below asking price or ask for seller concessions.
• In a seller’s market, you’ll want to be strategic – often offering close to or above list price, with strong terms or flexible timelines.

A good agent will analyze the data, understand the seller’s motivation, and help you write an offer that’s competitive without overpaying. Remember: negotiation doesn’t always mean lowering the price – it can mean adjusting terms like closing date, repairs, or included items.

Inspections and appraisals protect both you and your lender:

• Home inspection: Optional but highly recommended. A licensed inspector evaluates the home’s condition (roof, HVAC, plumbing, electrical, etc.) and identifies potential issues. You can use this report to request repairs or renegotiate the price.
• Appraisal: Required by your lender. It confirms the property’s fair market value to ensure the loan amount matches the home’s worth.

If the appraisal comes in low, your agent and lender will help you decide whether to renegotiate, challenge the appraisal, or make up the difference.

Closing day is the finish line – when ownership officially transfers to you.

Here’s what to expect:

You’ll review and sign all final documents, including the loan and title paperwork (either in person or electronically).

You’ll pay your closing costs and down payment via certified funds or wire transfer.

The lender funds the loan, the title company records the deed, and you officially become the owner.

Once everything is recorded, you’ll receive your keys – often the same day or shortly after.

It’s a big day, but with a good agent and lender, it’s also a smooth one. Most of the hard work is behind you – it’s time to celebrate your new home.

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Your home’s value depends on what similar properties are selling for — not just what you hope it’s worth. The most accurate way to determine that is through a Comparative Market Analysis (CMA) prepared by a real estate professional.

A CMA looks at:

• Recent sales of comparable homes nearby
• Current listings and pending sales
• Market conditions (supply, demand, and seasonality)
• Your home’s unique features, size, updates, and location

Online estimates, using tools like this one, can give a starting point, but they don’t account for upgrades, neighborhood nuances, or buyer appeal. A professional market review gives you a realistic pricing range that helps you attract strong, serious buyers — and sell faster.

Start by thinking like a buyer: clean, bright, and well-maintained homes always stand out.

Here’s a step-by-step guide:

1. Declutter and depersonalize – remove excess items and family photos so buyers can imagine themselves there.
2. Deep clean everything – floors, windows, baseboards, appliances — details matter.
3. Make small updates – fresh paint, new light fixtures, or modern hardware can go a long way.
4. Boost curb appeal – mow the lawn, trim shrubs, add a welcome mat or potted plants.
5. Stage or style each room – arrange furniture to make spaces feel open and inviting.

Buyers form impressions within seconds, so the goal is to create a neutral, move-in-ready feel that photographs beautifully and shows well in person.

That depends on your timeline, budget, and the property’s condition.

• Minor repairs and cosmetic fixes (paint, leaky faucets, loose handles) are almost always worth doing – they send the message that the home has been cared for.
• Major repairs (roof, HVAC, foundation) should be evaluated carefully. Fixing them can lead to a higher sale price and smoother inspection, but if you’re short on time or cash, you can disclose them and adjust your price accordingly.

Selling “as is” can work in a hot market or for investment buyers, but it may reduce your pool of interested buyers. Your agent can help you calculate which option gives you the best overall outcome.

The highest offer isn’t always the best offer. Look beyond the price to the terms:

• Financing type – Cash offers or conventional loans often close faster and with fewer hurdles.
• Contingencies – Fewer contingencies (for inspection, appraisal, or selling another home) mean less risk of the deal falling through.
• Closing date – A timeline that fits your plans can be more valuable than a few extra dollars.
• Earnest money deposit – A strong deposit signals a committed buyer.

Your agent will help you break down each offer so you can see the true net proceeds, timeline, and risk level – then choose the one that best supports your goals.

Once you’ve accepted an offer, your home officially goes under contract – and several key steps follow:

1. Inspections: The buyer hires a professional inspector to evaluate the property’s condition. You may receive repair requests or negotiate credits.
2. Appraisal: If the buyer is financing, their lender orders an appraisal to confirm the home’s value.
3. Title & Escrow: The title company ensures ownership is clear and manages funds securely.
4. Final Negotiations: You’ll finalize any agreed-upon repairs and confirm closing details.
5. Closing Day: You sign the final documents, the deed transfers to the buyer, and you receive your proceeds.

From accepted offer to closing typically takes 30 – 45 days, depending on financing and contingencies. During this time, your agent will coordinate with all parties and keep you updated at every milestone.

It’s possible – you just need a clear financial and timing plan.

Here are a few common options:

• Use a home equity line or bridge loan: Borrow short-term against your current home’s equity to fund your next down payment.
• Make a contingent offer: Your purchase depends on your current home selling first (more on that below).
• Sell first, then rent back: Some buyers let sellers stay in the home briefly after closing, giving you time to find your next one.
• Tap savings or investment accounts: If you’re financially able, this can let you buy first and reimburse yourself once your home sells.

The right choice depends on your financial comfort level and how competitive your local market is. A good agent and lender can help you map out your best route – minimizing overlap, stress, and risk.

Both approaches have pros and cons, and the best choice depends on your finances, market conditions, and tolerance for juggling.

Selling first gives you:
Certainty – you’ll know exactly how much you can spend
Stronger buying power – fewer financial risks or contingencies

But, temporary housing may be needed between closings

Buying first gives you:
Continuity – you move straight from one home to the next
Time – no pressure to rush your sale

But, you’ll carry two mortgages or rely on bridge financing temporarily

In a fast-moving seller’s market, many people buy first if they can. In a slower market, selling first is often safer. Your agent can help you weigh which option fits your market and comfort zone best.

A bridge loan is a short-term loan that lets you use the equity in your current home to buy your next one before selling.
It “bridges” the gap between the two transactions – giving you the funds you need for your down payment or closing costs. Once your first home sells, you pay off the bridge loan.

A contingency sale means your offer to buy a new home depends on your current home selling first. It protects you financially – if your home doesn’t sell within a set time, you can cancel without penalty.

Both can work well, but they come with trade-offs: bridge loans carry short-term interest costs, and contingency offers are less competitive in hot markets. Discuss both with your lender and agent to see which aligns better with your situation.

Coordinating two transactions is tricky – but with planning, it can be seamless.

Here’s how to make it work:

1. Work with one agent and one lender for both transactions. They can coordinate timelines and paperwork.
2. Negotiate flexible dates – for example, request a 45–60 day closing on your purchase and a shorter closing on your sale.
3. Use a rent-back agreement to stay in your old home for a few weeks after selling.
4. Line up your financing early so there are no surprises when it’s time to close.
5. Plan your move strategically – schedule movers and utility transfers with a few buffer days.

Most buyers and sellers close both homes within a few days or weeks of each other. The key is strong communication between your agent, lender, and title company – so everything moves in sync.

A home inspection is your chance to understand the true condition of the property before you finalize your purchase.

A licensed inspector will examine all major systems and components, including:

• Roof, foundation, and structure
• Plumbing, electrical, and HVAC systems
• Windows, doors, insulation, and overall safety features

They’ll provide a detailed written report highlighting any concerns – from minor maintenance issues to major repairs.
Once you review the report, you can:

• Accept the property as-is
• Request repairs or credits from the seller
• Renegotiate the price
• Withdraw from the deal if serious issues arise (depending on your contract terms)

Inspections usually take 2 - 3 hours and cost a few hundred dollars, but they can save you from much bigger expenses down the road.

It can – but most don’t, especially when handled proactively.
A few common reasons a sale might not close include:

• Financing issues: The buyer’s loan doesn’t get final approval
• Inspection findings: Major problems discovered that can’t be resolved
• Appraisal gaps: The home appraises for less than the agreed price
• Title issues: Unresolved liens or ownership disputes
• Contingencies not met: Deadlines or conditions in the contract aren’t satisfied

Most of these can be avoided with good communication, timely paperwork, and a responsive agent and lender. Even if an issue arises, there are usually ways to fix it – renegotiation, extensions, or alternative financing options.

Real estate agents are paid through Realtor professional service fees – a percentage of the home’s final sale price, usually around 5% – 6% total, which is split between the buyer’s and seller’s agents.

• The seller usually pays the commission from the proceeds of the sale.
• The buyer doesn’t pay their agent directly in most cases.

This structure allows both sides to have professional representation throughout the process.

The commission covers much more than marketing or showings – it includes market analysis, pricing strategy, negotiation expertise, transaction coordination, and guidance through inspections and closing.

Delays happen – it’s normal and usually fixable.

The most common causes are appraisal timing, loan underwriting, title work, or last-minute document issues.

Here’s how to keep things on track:

1. Stay in close contact with your agent and lender – communication prevents surprises.
2. Respond quickly to any requests for documents or signatures.
3. Avoid big financial changes (like switching jobs or buying a car) that could affect your loan approval.
4. Ask about a closing extension if needed – it’s common and can usually be arranged.
5. Be flexible with movers and utilities in case your date shifts by a few days.

If everyone communicates clearly, most delays are short and easily managed. The key is to stay calm and proactive until all the paperwork clears and the deal is officially complete.

The best lender is one who offers competitive rates, clear communication, and a smooth process – not just the lowest quote.

Here’s how to choose wisely:

1. Compare at least 2–3 lenders – including local banks, credit unions, and mortgage brokers.
2. Ask about closing timelines, fees, and loan options, not just interest rates.
3. Read reviews and ask your real estate agent for recommendations – they often know who performs best under pressure.
4. Look for responsiveness and transparency – your lender should explain every step clearly and answer questions promptly.

A great lender is a financial partner who helps you close confidently – not just someone who quotes numbers.

Mortgage rates directly impact your monthly payment and overall buying power.

Here’s a quick example:
If rates rise by 1%, your monthly payment on a $400,000 loan can increase by roughly $250–$300 per month. That change might reduce how much home you can afford by tens of thousands of dollars.

Even a small difference in rate can make a big long-term impact, so it’s worth watching trends, comparing offers, and locking in a good rate once you’re pre-approved.

Your lender can run payment scenarios so you can see how rate changes affect your budget before you shop.

Lenders verify your financial stability, so they’ll ask for documentation that shows your income, assets, and debts.

Here’s what you’ll typically need:

• Proof of income: Recent pay stubs, W-2s, or tax returns (usually 2 years)
• Proof of assets: Bank statements, retirement or investment accounts
• Credit information: Authorization to check your credit report
• Identification: Driver’s license or government ID
• Debt details: Loan statements, car payments, student loans, etc.
• Employment verification: Sometimes confirmed directly by your employer

Having these ready early helps you get pre-approved faster – and positions you as a serious buyer when you make an offer.

From application to full loan approval usually takes 30 to 45 days, depending on the lender and complexity of your finances.

Here’s the typical timeline:

1. Pre-approval: 1 - 3 days once you submit documents.
2. Underwriting (after offer accepted): 2 - 4 weeks, as the lender verifies income, assets, and the property appraisal.
3. Final approval and clear to close: The final step before signing.

You can help keep things moving by responding quickly to lender requests and avoiding big financial changes during the process.

A stronger credit score can mean a lower interest rate and better loan options.
You can start improving your score 3–6 months before applying by:

• Paying bills on time – payment history has the biggest impact.
• Lowering credit card balances – aim for under 30% of each limit.
• Avoiding new debt or large purchases.
• Checking your credit report for errors and disputing any mistakes.
• Keeping older accounts open to show a longer credit history.

Even modest improvements – like raising your score by 20 - 30 points – can save you thousands over the life of your loan.

If your loan isn’t approved after going under contract, it’s stressful – but not the end of the world.

Common reasons include changes in employment, unexpected credit issues, or appraisal problems. Here’s what to do:

1. Stay in close contact with your lender and agent. They can often fix small issues quickly.
2. Ask about alternative loan programs – sometimes switching loan types or lenders can save the deal.
3. Rely on your financing contingency. This clause protects your earnest money deposit if your loan is denied through no fault of your own.

If financing can’t be resolved, your agent can help you regroup, re-pre-qualify, and prepare for your next opportunity with stronger footing.

An appraisal ensures the home’s market value supports the amount you’re borrowing.

Your lender orders it through a neutral third party to confirm that the property is worth the purchase price.

The appraiser evaluates:

• Recent comparable sales in the area
• The home’s size, condition, and features
• Location and market trends

If the appraised value comes in at or above the purchase price – great, you’re clear to proceed.

If it comes in lower, your agent and lender will help you decide whether to:

• Renegotiate the price
• Make up the difference in cash
• Request a second appraisal or reconsideration

The appraisal protects both you and the lender from overpaying for the property.

There are several main types of mortgages, each designed for different situations:

• Conventional Loan: The most common type, offered by private lenders and not backed by the government. Typically requires 5% - 20% down and a credit score of 620 or higher. Private Mortgage Insurance (PMI) applies if you put less than 20% down, but can be removed later.
• FHA Loan (Federal Housing Administration): Ideal for first-time or lower-credit buyers. Down payments can be as low as 3.5%, and credit requirements are more flexible. However, FHA loans include upfront and annual mortgage insurance premiums.
• VA Loan (Department of Veterans Affairs): Available to active-duty military, veterans, and eligible spouses. Offers 0% down, no PMI, and competitive rates. These loans are one of the best benefits of military service.
• USDA Loan (U.S. Department of Agriculture): Designed for rural and some suburban areas. Offers 0% down and low rates for eligible buyers with moderate income.

Each program has unique benefits, so it’s worth discussing options with a lender who can match your financial profile and location to the best fit.

The difference is all about how your interest rate behaves over time:

• Fixed-Rate Mortgage:
  The interest rate stays the same for the entire life of the loan. Your monthly payment doesn’t change – which makes budgeting simple and predictable. Great for buyers planning to stay in their home long-term.
• Adjustable-Rate Mortgage (ARM):
  The rate starts lower for an initial term (usually 5, 7, or 10 years), then adjusts periodically based on the market. Payments can go up or down depending on future interest rates.

ARMs can save money upfront, but they carry more risk later if rates rise. Fixed-rate loans offer stability; ARMs offer short-term savings and flexibility.

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It depends on your priorities – monthly comfort or long-term savings.

• 30-Year Mortgage:
  Lower monthly payments
  Easier to qualify for
  You’ll pay more interest over time

• 15-Year Mortgage:
  Higher monthly payments
  You’ll own your home twice as fast
  You’ll pay significantly less in interest

If your goal is to keep payments manageable and maintain cash flow, a 30-year loan is usually best. If you can comfortably afford a higher payment and want to build equity faster, the 15-year option can save tens of thousands in interest. Some buyers even start with a 30-year loan and make extra payments toward the principal to get the best of both worlds.

These four components make up your total monthly mortgage payment:

• Principal: The amount you borrowed – each payment reduces this balance.
• Interest: The cost of borrowing the money, based on your loan’s rate.
• Taxes: Your property taxes, collected and paid by your lender through an escrow account.
• Insurance: Usually includes homeowner’s insurance (and sometimes mortgage insurance) to protect your home and lender.

Lenders use PITI to estimate your full monthly payment and ensure it fits comfortably within your income and debt ratios. It’s the best “real” number to use when planning your budget.

They’re tools to adjust your upfront costs and long-term interest rate – kind of like a tradeoff between paying now or later:

• Discount Points: You pay more upfront to lower your interest rate.
  Each point typically costs 1% of the loan amount and can reduce your rate by about 0.25%. Best for buyers who plan to stay in their home for many years – the upfront cost pays off over time.

• Lender Credits: The opposite of points – your lender helps cover some of your closing costs, but you accept a slightly higher rate. Best for buyers who want to minimize upfront expenses or don’t plan to stay long-term.

Whether either option is “worth it” depends on your timeline. If you’ll be in the home for a while, buying points can save thousands over time. If you’ll move or refinance within a few years, lender credits often make more sense.

It all comes down to supply and demand – how many homes are available versus how many people are looking to buy.

• Buyer’s Market: There are more homes for sale than active buyers, so buyers have the advantage. Homes stay on the market longer, prices may soften, and sellers are often more open to negotiations or concessions.

• Seller’s Market: There are more buyers than homes available, so sellers have the advantage. Homes sell quickly, often with multiple offers and fewer contingencies. Buyers may need to act fast and make stronger offers to compete.

Markets can shift seasonally or regionally – your agent can show you what’s happening locally so you can adjust your strategy with confidence.

When several buyers submit offers on the same property, the seller reviews them all – often within a short timeframe – and decides which one offers the best overall terms.

That doesn’t always mean the highest price wins. Sellers also weigh:

• The type of financing (cash or mortgage)
• Contingencies (inspection, appraisal, financing, etc.)
• Closing date flexibility
• The buyer’s earnest money deposit
• Any personal notes or special terms

Sometimes sellers will ask for “highest and best” offers – giving all interested buyers a chance to submit their strongest proposal.

If you’re in a multiple-offer situation, your agent will help you craft a competitive offer that balances your financial comfort with what the seller values most.

In a hot market, some buyers choose to waive contingencies (like inspection or appraisal) to stand out – but it comes with risk.

Here’s what to know:

• Inspection contingency: Waiving this means you accept the home “as is.” You lose the chance to negotiate repairs or walk away if serious issues are found.

• Appraisal contingency: If you waive it and the home appraises below the purchase price, you’ll need to pay the difference in cash.

• Financing contingency: Waiving it means your earnest money could be at risk if your loan falls through.

A smarter approach may be to shorten contingencies instead of removing them – for example, committing to a 5-day inspection instead of 10, or increasing your earnest money deposit to show strength.

Always talk through the risks with your agent and lender before waiving anything. The goal is to make your offer competitive without compromising your protection.

You’ll usually receive your keys on closing day – right after the sale is finalized and the deed is recorded with the local county.

Here’s how it works:

1. You sign all closing documents.
2. Your lender funds the loan (if applicable).
3. The title company confirms everything has officially recorded.

Once those steps are complete – often within a few hours – you’re the legal owner, and your agent or the title company will hand over the keys.

In some cases (like remote closings or rent-backs), key delivery might be delayed by a day or two, but your agent will coordinate the timing so you know exactly when you can step into your new home.

Keep anything that relates to your purchase and loan – both for reference and for taxes later. The most important documents include:

• Closing Disclosure: Summarizes your final loan terms and closing costs.
• Deed and Title Policy: Proves you own the property.
• Promissory Note and Mortgage/Deed of Trust: Details your loan agreement.
• Final Loan Application and Appraisal Report.
• Home Inspection Report (for future maintenance or resale).
• Home Warranty or repair coverage documents, if applicable.
• Property tax and insurance information.

Store digital copies securely and keep paper versions in a safe place – you’ll need them for taxes, refinancing, or if you ever sell the home.

In most cases, immediately after closing – once the title is recorded and the keys are released, the home is officially yours.

If you negotiated a rent-back agreement, the seller may stay in the home for a set period (often a few days or weeks) after closing. Your agent will help you confirm the move-in date in advance so you can plan utilities, movers, and logistics confidently.

Both property taxes and homeowners insurance are typically handled through your mortgage escrow account – meaning they’re included in your monthly payment.

Here’s what happens:

• Your lender collects a portion of your annual taxes and insurance each month.
• When the bills come due, your lender pays them on your behalf.
• You’ll receive annual statements for both, showing what was paid.

If you paid your taxes and insurance directly at closing (common with cash purchases), you’ll pay those bills yourself going forward.

Either way, it’s smart to review your escrow statements annually and confirm your coverage and tax amounts stay current.

Owning a home comes with recurring costs beyond your mortgage payment. Planning ahead makes them easy to manage.

Here’s what to expect:

• Property taxes: Paid annually or through your mortgage escrow.
• Homeowners insurance: Protects your property and belongings.
• Utilities: Electricity, water, gas, trash, internet, and possibly sewer or recycling.
• Maintenance & repairs: Budget 1% - 3% of your home’s value per year for upkeep – things like HVAC service, landscaping, paint, and roof care.
• HOA or condo fees: If applicable, these cover shared amenities or neighborhood maintenance.

Owning a home means you’re responsible for the upkeep, but planning for these expenses keeps things predictable – and your property in top shape.

Property taxes are set by your local government based on your home’s assessed value and area tax rate.

They fund services like schools, roads, and public safety.

• Most homeowners pay property taxes through escrow – your lender collects a portion each month and pays the bill for you.

• Tax rates vary by location and can change as home values or budgets shift.

HOA (Homeowners Association) fees apply if your home is part of a community with shared amenities or neighborhood rules.

They typically cover things like landscaping, pools, security, and community maintenance.

HOA fees can be billed monthly, quarterly, or annually – and are separate from your mortgage payment.

Always review HOA rules and budgets before buying, so you know exactly what’s included and expected.

It’s smart to check your home’s market value once a year, or whenever you’re considering refinancing, remodeling, or selling.

Here’s why it matters:

• You’ll understand how your equity is growing.
• You can confirm your property taxes are still accurate.
• You’ll know when it might be time to refinance or leverage your home’s value for upgrades or investments.

Online estimates are fine for a quick snapshot, but a local real estate professional can give you a much more accurate analysis using current sales and neighborhood trends.

Think of it as a yearly “home checkup” – simple, smart, and empowering.

Yes – refinancing is a common way to adjust your mortgage as your needs or the market change.

Homeowners refinance to:

• Lower their interest rate and reduce monthly payments
• Shorten their loan term (e.g., from 30 to 15 years)
• Tap into equity for renovations, debt consolidation, or other goals
• Remove PMI (Private Mortgage Insurance) once they’ve reached 20% equity

Refinancing typically involves a new loan application, appraisal, and closing costs – so it’s most worthwhile when you can save money or improve your financial position long-term.

Your lender or agent can help you compare costs, rates, and potential savings to decide if refinancing makes sense for you.

Escrow is a neutral third-party account that holds money and documents during a real estate transaction until all the terms of the contract are met.

Here’s how it works:

• When you go under contract, your earnest money deposit goes into escrow.

• The title or escrow company oversees the process, making sure everyone – buyer, seller, and lender – fulfills their responsibilities.

• Once the deal closes, funds are distributed: the seller receives payment, and the buyer takes title.

Escrow protects both sides – ensuring money and property only change hands when everything is properly completed and verified.

A contingency is a condition that must be met for the sale to move forward. Think of it as a built-in safety net for both buyer and seller.

Common contingencies include:

• Inspection contingency: Lets the buyer back out or renegotiate if major issues are found.

• Appraisal contingency: Ensures the home’s appraised value meets or exceeds the purchase price.

• Financing contingency: Protects the buyer if their loan isn’t approved.

• Home sale contingency: Gives the buyer time to sell their current home before finalizing the purchase.

Once all contingencies are satisfied (or waived), the sale is considered “clear to close.”

Earnest money is a good-faith deposit buyers make when submitting an offer – typically 1% - 3% of the purchase price.

It shows the seller you’re serious about buying their home.

• If the deal closes, the money is applied toward your down payment or closing costs.

• If you back out for a valid contingency reason (like inspection or financing), you usually get it back.

• If you walk away without cause, the seller may keep it as compensation for lost time on the market.

It’s held in escrow until the transaction closes or is canceled under the contract terms.

A Comparative Market Analysis (CMA) is a professional report prepared by a real estate agent to estimate your home’s current market value.

It compares your property to recently sold, active, and pending homes with similar size, condition, and features in your area.

A good CMA helps:

• Sellers set a competitive and realistic asking price

• Buyers evaluate if a listing is priced fairly

• Agents negotiate from a position of data and confidence

Unlike automated online estimates, a CMA factors in local insight, condition, and market timing – giving you a much clearer picture of what your home is truly worth.