ANSWERS TO BUYER'S FREQUENTLY ASKED QUESTIONS WHAT IF I NEED TO SELL MY HOME BEFORE I BUY A NEW ONE? To put yourself in the best negotiating position before you find the new home you want, enlist the services of a qualified real estate agent to help you put your current home on the market. Once you write an offer on a new home, your offer will be "contingent" on the sale of your home. A buyer in this position may not have the same negotiating power as one whose home has already sold (or at least has an accepted offer). Some sellers may be hesitant to accept your offer. Your agent will assist you in working through this issue. ONCE I HAVE FOUND A HOME, HOW DOES MY OFFER GET PRESENTED TO THE SELLER? Your agent will call the agent who is the listing agent for the home you have chosen. They will make an appointment with the seller to present your offer. Your agent is there to explain the details of your offer and negotiate on your behalf. WHAT HAPPENS IF I OFFER LESS MONEY THAN THE ASKING PRICE? If you offer less money, the seller has three options. They can accept the lower offer, counter your offer or reject it completely. Remember that there could be another buyer out there who is also interested in the home you've chosen. If they happen to write an offer at the same time you do, the seller will have two offers to compare. There are usually many aspects of each offer to consider, but ultimately the seller will want to accept the best price and terms. In active real estate markets, homes often sell for their listed price. In hot markets, there may be many buyers vying for the same house, which sometimes drives the final sale price above the original listing price. Your real estate professional can help you plan your strategy, based on the current real estate market in your area. DOES IT COST ME MONEY TO MAKE AN OFFER? When you write the offer on the home you've chosen, you will be expected to include an earnest money deposit, typically a total of 10% of the purchase price. The deposit is a sign of your good faith that you are seriously interested in buying the home. WHERE DOES MY EARNEST MONEY GO? The earnest money is deposited into a trust account of the real estate company or the closing agent. That deposit becomes a credit to the buyer, and is applied towards the purchase price. CAN I LOSE MY EARNEST MONEY? Real estate contracts are complicated legal transactions. This is another area where having a knowledgeable and professional agent is a necessity. Rarely does the buyer lose the earnest money. Most often, if the transaction falls apart, there are circumstances beyond the buyer's control that cause it to happen. However, if the buyer willfully decides that they no longer want to buy the house, and have no legal reason for rescinding their offer, they may lose the earnest money deposit. IS THAT ALL THE MONEY THAT'S INVOLVED? There are other fees, including: appraisal, credit report, inspection, recording fees and taxes which will be debited at closing.

BUYING A HOME How Your Agent Works For You Steps in the Buying Process Financing We can Help You Buy Any Home Coordinating the Closing Frequently Asked Questions Terms

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