Home Buying / Selling Q + A

Through the process of selling our home / buying our new home, I had TONS of questions from you guys! I put together a post for you to refer back to when needed. I decided to enlist the help of my favorite real estate agent to answer your questions. Her name is Jami Howe, and she just so happens to also be my mom!

She has now represented us in the purchase of both of our homes, and has helped numerous first time buying friends of ours!

She is extremely knowledgeable about all things real estate, as she's been in the market for close to 26 years. She was there to help us day and night, answer any questions we had, and gave us the confidence we needed to make big decisions throughout the length of the buying and selling process. We can't recommend her enough!

I'm listing her contact info, so please don't hesitate to reach out if you have any additional questions, or are thinking about buying/selling in the KC area!

• Jami Howe
• Email: jami@thgsold.com
• IG: @jamihowe

What’s the commission rate the buyer pays?

The buyer typically does not pay any commission to their buyer’s agent. The seller’s pays both the listing agent and buying agent’s commissions. The exception is that many companies have a small flat fee charge to the buyers, usually somewhere in the $200-$500 range, but other than that the buyer does not pay commission.

How long is the process once you decide to start?

This varies widely depending on price range and availability of inventory in your area. In our area I would say 30-60 days is the typical amount of time most buyers look before finding the right one. Then, from the time of an accepted contract to closing is typically 30 days, but that is a negotiable term between buyer and seller so it can be longer.

How to pick a good realtor?

I strongly recommend asking for referrals from friends/family/co-workers. Buying a home is one of the biggest decisions you will make and a good realtor will be your best resource to guide you through the process smoothly. After you get a couple names, ask to meet for coffee with them. You need to feel comfortable with him/her, have an easy rapport, and most importantly trust him/her. Ask how much experience they have. Ask for a couple names of their happy clients. Ask how available they will be to show you homes on short notice. All important things to know!

How to choose a lender?

Again, recommendations from family/friends/co-workers is important, but a good agent will also have very valuable input. A lender can make or break a transaction, especially in this competitive market. Lean on your agent as a resource to help with every aspect of the process. The same rules apply to choosing a lender as choosing an agent. Experience, good communication and competitive rates/fees are big considerations.

Best tips for first time homebuyers?

1. Talk to a lender and figure out what price of home you are comfortable buying. This is extremely important so that you are not out there searching for your dream home only to find the one you want and then realize it is not feasible within your budget.
2. Find an agent you are comfortable with. Even if you think you are a long ways out from being ready to buy, establish a relationship with an agent – you never know when your dream home may come on the market and you need to be ready to move on it.
3. Establish your basic “must haves” in a home. Things such as general location, price range, floorplan, age of home, school district, etc. This will help your agent set up an automatic search process for you so that you will receive listings that meet your criteria as soon as they hit the market. Do not worry about starting to work with an agent even though you may be a year or more away from buying. Establishing that relationship early is a benefit to everyone.

What’s a normal % to put down on a home?

Down payments can range from 3% to 20% (or more), depending on the type of loan product and your financial situation. An “average” would be 5-10% for a first time buyer. If you can afford to put 20% down, you will save yourself the Private Mortgage Insurance (PMI) that lenders charge on every loan until you have reached the 20% down position.

New home construction v. previously lived in?

Total personal preference but in general, the pros to buying a new home include choosing your lot, making your personal design and décor choices, and the satisfaction of building your home just the way you want it! Cons include: typically new home construction can be more pricey than lived in homes, lots of additional costs involved in a new home that you don’t think about such as blinds/window treatments (can be very expensive), mature/additional landscaping, sprinkler system, fencing, appliances. And of course the dreaded overages if your tastes run richer than what is offered in your design allowances can add up very quickly. Typical overages would be in the areas of lighting, flooring, tile, and countertops.

Home v. condo?

Condos can be a great choice for people who prefer the convenience of having someone else take care of exterior maintenance, or prefer the urban lifestyle that many condos offer. Amenities such as pools, exercise facilities, covered parking, and the “lock and leave” lifestyle are definite advantages to owning a condo. Disadvantages are the monthly fees which can sometimes be very pricey, and condos are a different animal in terms of obtaining a mortgage. Check with your lender to understand the ins and outs of condo financing if you are thinking you are interested in condo living.

Top 3 things to do before selling to increase the value of a home?

Speaking in terms of “smaller” things (not big home renovation projects such as kitchen reno, installing wood flooring etc.), the three easiest things you can do that will give you a lot of bang for your buck are 1) Curb appeal! Spruce up your landscaping, put some beautiful pots with bright flowers on your porch, paint your front door a fresh color, sweep your porch and driveway. First impressions are everything! 2) Exterior maintenance – repair any wood rot, repaint trim, power wash decks and sidewalks. 3) Deep clean the interior. Shampoo carpets, touch up paint nicks and scratches, declutter every room 50% more than you think you need to, clean the oven and refrigerator, tidy up closets. Every little detail can make or break a buyer’s impression of your home.

Dealing with “bidding wars”?

A hot topic right now due to the lower inventory in most areas. My best advice is to use an aggressive, experienced agent. There are ways to position your offer advantageously outside of price alone. Your agent also needs to be quickly available – being the first offer in is often a huge advantage. As soon as you see a house hit the market, you need to look at it and be prepared to make a strong, quick offer.

How has COVID affected the buying/loan process?

It really hasn’t affected the loan process other than some lenders are requiring a bit more time to process your loan, but check with your lender. In terms of looking at houses, masks and hand sanitizer are required, in addition to most Realtor associations are requiring that only the actual buying parties tour the home. (Mom, dad, grandma, grandpa and your 18 cousins can come see if after your offer is accepted. 😊)

How much are closing costs?

The fist thing your lender will provide you after you give him/her your estimated purchase price and down payment is a document called the “Lender’s Estimate” (LE). This will outline ALL of the costs associated with buying a house. Lender’s fees, realtor fees, title insurance, taxes, etc. You can ask for this before you even start looking so that you know up front exactly what to expect when you do find the one!

Can buyers request that sellers pay all closing costs?

Yes, you can request this. However, in this competitive market, it is not common for sellers to cover the buyers closing costs unless the purchase price of the home is raised to cover those costs. Unfortunately for buyers, it is a seller’s market right now.

What are a realtor’s costs when selling your home?

In our area (KS/MO), the industry’s standard agent fees are 6% of the sale price of the home. That figure is broken down into half to the listing agent’s brokerage (company)  and half to the selling agent’s brokerage (company). Your agent does not receive that entire 3%! A percentage of that goes to the brokerage depending on your agent’s volume split with the brokerage.

Benefits of buying with an agent?

Buying a home is the biggest investment you will make in your life. To go into that process without guidance from an experienced professional is just a risk that does not have any up side. As the buyer you do not pay your agent’s commission, you are essentially getting their services at no charge to you. (Some companies do charge a small flat fee to buyers.) Realtors have knowledge of the local market to help you understand and protect your investment (i.e. keep you from potentially overpaying or buying a home in an area with unknown factors such as future road improvements or city easements), they have experience with contract law, negotiations, inspections, keeping all parties within time frame compliance, working with lenders, appraisers and title companies. A good realtor will be your partner and hopefully friend, making the home buying process as stress-free and enjoyable as possible!

Can we buy a house together as a non-married couple?

Yes. Two people who are not married can buy a home together. Your lender can guide you through the loan application process, and typically you would take title to the home as “joint tenants” meaning you each have 50% ownership of the home.