Common questions asked by first-time homebuyers

Kathy McQuilkin, Treasurer

Buying a home is an exciting and intimidating process. Many first-time homebuyers can have a lot of questions about the real estate process. If you’re working with clients who are new to the real estate experience, here are a few questions you can expect to answer frequently.

What is a Realtor®?

A real estate agent is a Realtor® when he or she is a member of the National Association of Realtors®. Make sure your clients know that as a Realtor®, you operate under a professional code of ethics that goes above and beyond what might be required of other real estate professionals. A Realtor® is instrumental in making sure the process is both simple and seamless from start to finish.

How much do you charge?

Though rates are typically negotiable, be straightforward with your clients about your standard rate. It’s also important to remind them of the behind-the-scenes work you’ll do to assist in the sale. Don’t simply set a rate; let them know what they’re paying for.

What’s the best way to stay in contact with you?

Let your client know your hours of availability. Let them know whether you prefer email, phone, or text, and make it clear that you’re working on their case even when you’re not on a call with them.

What kind of house can I afford?

Once you have a general sense of the kind of home your client is interested in, you can help provide a rough estimate of where they stand, and then further explain what lenders will look at based on payment and income.

How much down payment money will I need?

How much down payment they will need depends on several factors, including the price of the home, the type of mortgage they get, and customary closing costs.

What financial programs are available for first-time homebuyers?

As a Realtor®, you can suggest some the best financing options available to meet their needs. Organizations such as the Pennsylvania Housing Finance Agency (PHFA) can offer up to 100 percent financing on some homes. PHFA not only offers low interest rates but closing cost and down payment assistance for qualifying buyers.

What other monthly costs are associated with buying a new home?

While of course mortgage is part of the monthly puzzle, they will also have property taxes and insurance to consider in their monthly payment. This is often put into escrow with their overall payment. If their utilities were covered in their previous rent, suggest they take into account the possibility of paying water, sewage, trash removal, electricity, and/or gas. They may also have homeowner association (HOA) dues, or condo fees.

What questions do you see clients asking on a regular basis and how do you answer them?