Top 30 Real Estate Questions | Answers for Buyers and Sellers

Whether you’re planning to buy or sell a house, the process can feel daunting. Real estate transactions are complicated, so it’s normal to have questions during every step.

In this guide, we’ll answer 30 of the most common real estate questions for both buyers and sellers.

If you have more questions or want more personalized answers, we recommend connecting with a real estate agent. A realtor can answer questions based on your unique situation and local market, giving you the confidence and knowledge you need to navigate the transaction. Find an experienced real estate agent near you.

The top 15 real estate questions to ask when selling a house

1. How do I prepare my home before I sell it?

When preparing to sell your home, the first thing to do is make it presentable. This means giving the entire house a thorough cleaning and making small repairs. Mop the floors, scrub the bathrooms, and get rid of the grime in the kitchen.

Little things like patching holes in the wall, changing burned-out lightbulbs, and repairing broken appliances can make your place stand out in a crowded market.

And don’t forget about paint — returning the walls to a neutral color can help your house sell quicker. White, creams, and grays can make rooms seem bigger and help potential buyers see themselves living there.

If you’re not moving out before listing your home, you’ll also need to depersonalize and declutter. Put away your family photos, knick-knacks, and other personal items. Consider renting a storage unit if you don’t have space to put them all.

2. How long will it take to sell my home?

On average, a house takes around 98 days to sell. That includes 63 days on the market and 35 days for closing. The exact time it’ll take your home to sell depends on a few things, including:

• The time of year you’re listing: Homes tend to sell faster in the spring and early fall.
• Conditions in your local housing market: Homes sell faster in a seller’s market, when there is low inventory and high demand.
• The condition of your home: Homes in great condition may sell faster than homes that need work.
• How the buyer is financing: If a buyer needs to take out a mortgage, this may slow down the process.

The longer your home is on the market, the more money you lose. You’ll still have to pay your mortgage, taxes, and utilities until the buyer officially closes.

To avoid this, there are some things you can do to help sell your home faster. Make impactful repairs, like adding new carpet or painting the interior. You can also set a competitive price with the help of a top real estate agent.

3. What should the list price of my home be?

The first step in deciding your home’s list price is to get a comparative market analysis (CMA) from a real estate agent. To perform a CMA, your agent will find similar homes in your neighborhood that have similar square footage, number of bedrooms, and number of bathrooms.

They’ll see what these homes recently sold for or are listed for, and use this as a starting point for your own list price. A CMA is completely free and one of the first services your realtor will provide for you.

A great agent will be an expert in their local neighborhoods, so they’ll be able to price your home to sell while still getting you a fair deal. Get a free home valuation from a top local realtor.

4. Why is my home’s assessed value different from the market value?

Your home's assessed value and market value are each determined by different factors. Buyers and sellers affect the market value of a home, while county assessors calculate the assessed value for property tax purposes.

Your home’s market value may be higher than its assessed value. That’s because buyers are willing to pay more than the home is technically worth because of low inventory. Assessed value is only for calculating your property taxes, so it is less influenced by swings in the market.

Also, keep in mind that appraised value is separate from both market and assessed value. Appraised value is calculated by a licensed appraiser, usually to make sure your home is worth at least the value of your mortgage.

5. Are real estate commissions negotiable?

You can definitely negotiate your realtor’s fees. They’re typically 2.5–3% for listing fees. You may also want to offer a contingency to help cover the buyer’s agent fees, which will add another 2.5–3%.

When negotiating, be aware of what the typical rates are in your area and if you have any leverage. For example, if your home is in a seller’s market and you already know buyers who are interested, then a realtor has less work to do, so they may be open to providing a lower rate.

An easier way to pay lower commission is by working with a company that has built-in discounted rates. For example, Clever Real Estate pre-negotiates listing fees of just 1.5% with agents from top name-brand brokerages, ensuring you get full service while saving thousands.

6. When is the best time to sell a home?

Early spring and summer are great times to sell a home. Research shows that home prices are 1% higher in mid-April than during a typical week and 10.4% higher than at the start of the year. However, this is a national average, and the best time of year varies by location.

For example, in highly competitive markets like New York City and Los Angeles, the best time tends to be in late March. Whereas in less competitive markets, like Memphis or Indianapolis, you may be better off waiting until May.

Overall, home sales are still pretty good through early fall, so it wouldn’t be a bad idea to sell a home during this period, either. However, home sales drop once winter hits. January is the worst time to sell a home, as market activity is much lower.

7. Should I buy a new home before selling my old one?

Whether or not you should buy a new home before selling your existing home is a personal and financial choice. Having a new home lined up gives you peace of mind when selling, and you can move out on your own time.

It also prevents you from lining up temporary housing (and having to move twice), which can be a pain.

That said, you may get stuck paying two mortgages at once. This can be a problem if your sale takes longer than expected. You can also feel rushed into quickly finding a house instead of waiting for a better deal.

Also, many buy-before-you-sell programs depend on bridge loans, which often come with high fees and interest. Instead, you may be better off working with a realtor to negotiate a closing date that gives you enough time to find your new home.

8. How does my agent get paid when selling a house?

The average real estate commission rate is around 2.5–3% for sellers. As the seller, you’ll be responsible for paying your agent through your sale profits at closing.

In the past, sellers were also responsible for paying the buyer’s agent commission, which is another 2.5–3%. However, thanks to a recent legal settlement, that is no longer the case. Buyers now have to negotiate realtor fees directly with their agents.

However, sellers still have the option of offering a buyer’s agent concession. Doing so helps attract buyers to your property and reduces the financial burden for them.

9. How much does a seller pay in closing costs?

Sellers pay an average of 2.72% of the total sale price in closing costs, which doesn’t include listing fees, which add another 2.5–3%. When including realtor commission and pre-listing expenses such as repairs, those costs can rise to above 8%.

Typical closing costs include:

If you decide to pay part of your buyer’s closing costs, you may end up paying a bit more. They can range anywhere from 2–5% of the sale price.

10. How much of the sale price do I get?

How much you actually get when selling your home depends on a lot of factors, but in general, expect somewhere between 90–92% of the sale price, so long as your mortgage is paid off.

That usually includes 3–6% in realtor commissions and 2–4% in taxes and fees. But if you still owe money on your old mortgage, you will get less.

You’ll also get less if you agreed to pay for any of the buyer’s closing costs. Buyer’s closing costs can reduce your share of the profits by another 2–5%. You can calculate your share using a seller net sheet.

On closing day, your closing agent will distribute the funds to all the necessary parties. They’ll pay out your profits via a check or wire transfer, although it may take a few days for the funds to show up in your account.

11. How can I save money when selling a home?

An easy way to save money when selling a home is to work with a low-commission agent who provides full service. You don't have to negotiate the rate, and you still get full support from a professional.

Sellers usually pay 2.5–3% in listing fees. A low-commission agent can cut the rate to 1.5%, which would save you $7,500 on a $500,000 home.

Another option is to find a realtor with a traditional commission rate and try to negotiate it down yourself. But you need to have leverage, and many agents won't lower their rate by much, if at all.

You can also save money by trying to sell your home on your own to completely eliminate the listing agent commission.

But this method isn’t recommended unless you have extensive experience and knowledge in the real estate industry. You could lose out on a lot more money than an agent's commission costs if you don't price your home, market it, and negotiate with buyers effectively, leading to a lower sale price. Agents also handle paperwork so you don't land in legal trouble.

12. Should I pay my buyer’s closing costs?

You may want to pay for your buyer’s closing costs if it allows them to make a better offer or helps the sale close faster. Usually, paying for these costs comes in the form of a credit the buyer uses during closing. A buyer might put this credit toward:

Buyers may be able to put in a higher offer if there’s less money for them to pay up front. Paying their closing costs can also reduce the amount they need to take out on a mortgage, making it more likely they’ll qualify for the loan and the sale will go through.

Additionally, if your house has been on the market for a while, offering to pay for a buyer’s closing costs can attract more offers and speed up the closing process.

Finally, if the inspection reveals issues the buyer might want to repair, offering to pay the buyer’s closing costs or offering a credit to cover the repairs can make them feel more comfortable going through with the deal.

However, you can refuse to pay closing costs for the buyer. You should discuss with your realtor whether covering the buyer closing costs makes sense for your market.

13. Do I need a home inspection?

It’s the buyer’s responsibility to get a home inspection, so as the seller, you don’t need to get one. A home inspection costs an average of $298 nationwide, so that’s money you can keep in your pocket.

That said, a pre-listing inspection does have some benefits:

• You’ll have the chance to discover and take care of major problems before listing, which could increase the value of your home.
• You’ll get to choose your own inspector instead of relying on the buyer’s choice.
• You may be able to set a higher list price if your home is in great shape.
• You can encourage the buyer to waive the inspection contingency, meaning there will be fewer chances for your deal to fall through.

Keep in mind that a pre-listing home inspection is only good for 3–6 months, so you should only get one if you’re planning on selling soon.

14. What are common bank-required repairs?

If the buyer is just taking out a conventional loan, you’ll probably only need to fix major structural issues that put the value of the house at risk, such as foundation cracks or a deteriorating roof.

For buyers using a Federal Housing Administration (FHA) loan in particular, the house needs to meet higher appraisal and livability standards than for conventional loans.

That means issues that can render a buyer ineligible for an FHA loan include:

• Leaking roof
• Foundational issues
• Wiring problems
• Leaky plumbing
• Structural issues

This list is more extensive because an FHA loan is provided to low-income homebuyers who may not have extra money to cover repairs on their own. States and banks can also set their own requirements, so always check your local regulations.

There are strategies for selling a house that needs repairs if you don’t have the money or time to fix them yourself. For example, many cash buyers purchase properties “as is,” although you’ll likely get much less than market value.

15. How can a real estate agent help me sell a home?

A good listing agent has in-depth knowledge of the area and how your home compares to others on the market. They’ll have a good idea of how much you can get for your home and ways you can improve its value.

When it’s time to list, they’ll make sure your home’s priced right, helping to maximize your offers and sell your home faster. They’ll also take care of all the paperwork, market your home, and negotiate with buyers.

Real estate agents aren’t just helpful during the listing process, though. They offer a network of professionals throughout the entire selling journey, such as appraisers, mortgage lenders, and photographers.

The top 15 real estate questions to ask when buying a home

1. What is the first step for buying a home?

Before you can purchase a home, you’ll need to check your credit score. A prime credit score is considered anything above 660, while a super-prime score is above 720.[2] Potential buyers with credit scores of 700 or higher reassure lenders that they can be trusted to repay the loan.

High scores reflect consistent on-time payments, long-term borrowing experience, and a good mix of credit types (student loans, car loans, credit cards, etc.).

Lenders look at these factors to determine if you qualify for certain kinds of mortgages, so be sure to review your credit history and correct any errors. This will give you a better chance at qualifying for loans with lower interest rates.

Shop around for different mortgage lenders to find out what kind of loans you prequalify for before beginning your home search. With this knowledge, you can easily create a budget and start looking for homes within that range.

2. How long will it take to buy a home?

In 2024, it took buyers about 35 days to buy a house from when an offer was accepted to closing. The time to close on a house also varies depending on financing, with all-cash purchases taking as little as 7–20 days.

However, several factors can affect the buying process, including the property’s location, buyer demand, economic trends, and other variables. Before closing, you’ll need to:

• Order a home inspection
• Get an appraisal
• Conduct a title search
• Finalize mortgage details
• Review closing documents

To speed up the home-buying process, connect with a top real estate agent in your area. A knowledgeable agent can help you narrow down your options and negotiate with sellers on your behalf.

3. Can I back out of buying a house?

Yes, but you may lose earnest money (basically, a security deposit given to the seller upon signing a contract). You can also face legal consequences if you back out of the agreement for a reason not outlined in the purchase agreement.

This document outlines important details, such as repairs the seller is responsible for and contingencies of the real estate deal. Work with your realtor to include contingencies that will protect you should you need to walk away.

There are certain scenarios where breaking a purchase agreement is unavoidable. If you lose your job, can’t sell your current home, or can’t get approved for a mortgage, it’s best to wait until you reach financial stability before buying.

Other issues with the home, such as a failed home inspection, unrepaired problems, or difficulty with transferring the title, are also acceptable reasons to back out of an agreement. Again, you’ll need a purchase agreement that includes the appropriate contingencies so that you can walk away without facing penalties.

4. Are real estate prices negotiable?

Yes, you can and should negotiate when buying a house. You just need a good understanding of the current market and the seller’s needs and motivations.

When the real estate market is a seller’s market, for instance, homes are in high demand and will likely receive multiple offers. Lowballing an offer in this case might cause you to lose your chance at your dream home.

During the first three months of 2025, the average cost of a home in the U.S. was $514,200. If this number discourages you, learning how to negotiate is key. Tactful negotiation with a seller can help you afford a home you love instead of settling for an option under budget.

Consulting a real estate agent is your best bet if you want to make sure your offer won’t be rejected or ignored. Their knowledge of the local market and buyer demand will help you and the seller negotiate a fairer price.

The home inspection is also a good opportunity to try to negotiate a lower price. If the inspector finds any issues, you can ask for a reduced price, closing credits to cover the costs, or for the problems to be fixed prior to closing.

5. When is the best time to buy a home?

It depends on whether you’re searching for the lowest prices or the greatest variety of options. Based on 2024 data, the cheapest month to buy a house is January, when properties cost a median of $178.60 per square foot (compared to $194.20 in May when prices peak).[3]

However, these lower prices are because there’s less demand and also less inventory. August seems to be a happy medium, offering both low prices and a wide selection of homes. Since many sellers are eager to close deals before summer ends and school begins, buyers can expect to see plenty of price reductions in August. Data shows that 26% of sellers cut their prices in August.[4]

6. Should I sell my home before buying a new one?

It depends on how far along you are in your home search process. If you sell your home before you’ve narrowed down your options, you might be forced to find a short-term rental or stay with friends or family. In either case, remember that this means you’ll be forced to move twice or pay for a storage unit.

On the other hand, selling your home first can give you a significant advantage over other potential buyers. If you find a listing you really love, you can make a strong offer with the cash you made from the sale without worrying about going over your budget.

Furthermore, since you won’t feel rushed to accept an offer on your own home, you can wait until someone makes an offer you like.

7. How does my agent get paid when buying a house?

You’ll need to negotiate your buyer’s agent commission directly with your realtor. It will be stated in your buyer agency agreement, and they’ll typically be paid at closing.

Note that this payment structure is new and reflects changes made by the National Association of Realtors (NAR) in 2024. Previously, sellers covered both seller and buyer agent fees.

However, that doesn’t mean you’re necessarily on the hook for your agent’s commission. It is common now for sellers to offer a buyer’s agent concession where they’ll cover all or a part of the buyer’s agent fee. This concession is designed to attract more buyers to their properties.

8. How much does a buyer pay in closing costs?

Closing costs usually fall between 3–5% of the home’s sale price, which doesn’t include realtor fees. This payment covers several necessary items for the buyer, including:

Depending on the location, closing costs might also include real estate attorney fees, pest inspections, or natural disaster certifications.

Buyers can negotiate with sellers about who should pay the closing costs, but be aware of seller contribution maximums. These guidelines limit how much a seller can pay for closing costs based on your mortgage type.

9. How can I save money when buying a home?

You can check if you’re eligible for federally-backed FHA or VA loans. If you’re a first-time buyer or have less-than-ideal credit, for instance, you may qualify for an FHA loan or a home-buying program.

If you meet the criteria for a VA-backed loan, you might not have to make a down payment on a home. You’ll also receive better terms and interest rates compared to most traditional bank loans.

For additional ways to save, try to save up for a 20% down payment on a home. Doing this will ensure that you won’t have to pay for private mortgage insurance (PMI), which can cost anywhere from 0.3% to 5% of a loan’s principal balance every month.

Lastly, home buyer rebates (also known as commission rebates) are currently available in 41 states and could potentially save buyers thousands. With a home buyer rebate, the real estate agent or broker shares a percentage of the payment they receive at closing with you, so you get some of your money back.

10. What is earnest money/hand money?

Earnest money is often described as a "good-faith deposit" from an interested buyer. The amount is usually 1–3% of the home’s purchase price, and it shows the seller that the buyer is serious about closing the deal.

As the sale is pending, the earnest money is placed in escrow (an account held by a third party until the sale is finalized). At closing, the funds can go towards closing costs or a down payment on the home.

If the buyer has to back out of purchasing the home due to a contingency in the escrow agreement, they will get their earnest money back. However, if the buyer chooses to back out of the deal for any other reason, the money will go to the seller instead.

11. What is title insurance?

Owners title insurance protects homeowners from claims against their home that happened before they purchased it, such as a prior owner’s failure to pay taxes or fairly compensate contractors.

If you have title insurance, you’ll be covered for legal fees or title disputes that may come up during your time as the homeowner.

There are actually two kinds of title insurance:

• Lender title insurance is usually required when selling a home. This type protects the lender from any claims made on the house.
• Owner title insurance is completely optional, but paying this one-time fee will protect you from unexpected issues with the home’s title for as long as you own the house.

Purchasing both insurance policies is usually a good idea, and a lender’s title insurance is typically required if you’re getting a mortgage. The combined cost is about 0.5% of the home’s purchase price.

12. What should my down payment be on a house?

Making a down payment of 20% is ideal because you can avoid paying private mortgage insurance (PMI), but more realistically, lenders usually require at least 3% for the sale to go through.

Depending on where you live and what kind of mortgage you’re eligible for, some lenders may require a minimum of 5%.

In some circumstances, you may not have to worry about a down payment at all. If you’re a first-time buyer, veteran, or rural resident, there are low and zero-down mortgage programs available to help you afford a home.

13. How long can the seller take to respond to my offer?

Sellers generally have about 72 hours to respond to an offer, but this may vary by state. If a bank is selling a home, on the other hand, the response can take several days or weeks.

If you make an offer and the seller doesn’t respond at all, your offer was probably too low. To increase the likelihood that your offer will be accepted, a local realtor can help you strike the right balance between a reasonable cost for you and an appealing price for the seller.

14. Why do I need a mortgage before I buy a house?

If you can get pre-approved for a loan, it can help speed up the underwriting and buying processes, getting you into your new home sooner. A pre-approval letter reassures buyers that financing is unlikely to fall through.

However, keep in mind that pre-approval is not the same as approval. You can only get approved for a mortgage after you’ve made an offer on a house, since the lender will typically require the house to be appraised.

During the underwriting process, loan underwriters will review the "3 Cs":

• Your credit history
• Your capability to repay the loan
• Collateral

If you have a positive history of making payments on time, a good credit score, and a consistent income, the turnaround time can take just a few days.

Once a lender approves your loan application, you will be "clear to close." After this, your agent will have you sign closing documents, pay the down payment, and transfer the home’s title to you!

15. How can a real estate agent help me buy a home?

A buyer’s agent can help you find homes within your budget, schedule visits to houses you like, and negotiate with sellers. Top real estate agents have in-depth knowledge about your area and can save you time and money by narrowing down your best possible options.

Real estate agents also have access to the multiple listing service (MLS) database, which can help you find homes in popular locations before other buyers. Since realtors are plugged into the local market, they might even hear about potential properties before they’re officially listed!

Buying a home can seem overwhelming and confusing, but an experienced real estate agent can put your mind at ease.

Buy or sell your home with confidence

Now that you’ve gotten answers to some of the top real estate questions for sellers and buyers, you should feel more prepared to face the real estate market.

Being armed with this knowledge can help you negotiate a better price for your home and enjoy a smoother buying or selling experience.