Buyer FAQ’s

Buyer Frequently Asked Questions

Can my agent show me properties listed buy other company? 

Yes, an agent can show and sell any property listed by any company.

Types if agency

• Selling Agent – Sole agent to the buyer
• Listing Agent – Sole agent to the seller
• Dual Agent – Agent to both buyer and seller

How does my agent get paid? 

In most cases the buyers agent will be paid by the listing company. Coldwell Banker RPM Group has an agreement with all the companies in the Multiple Listing Service (MLS) as to how they will be compensated for selling their listings.

What is an appraisal? 

A qualified person’s opinion or estimate of a home’s value.

What if the appraisal on my house comes in low?  

• Negotiate with the seller to sell at appraised value.
• Purchase the property at asking price, but you will be responsible for paying the difference.
• Pull out of the transaction and get your earnest money back.

What is earnest money?

It is often called “good faith money.” Earnest money is money that you put up to show the seller you are serious about purchasing their property. The amount of earnest money is negotiable and not required to have a binding contract. The amount is negotiated in the contract to purchase. The earnest money is credited back to the buyer at closing.

Do I need to get a home inspection? 

YES!!! Every home buyer SHOULD get a home inspection. It is a professional visual inspection of the condition of the property. It will help you to avoid unpleasant surprises. Inspections may range from $175 – $375, depending on the size of the house.

What if the home needs repairs beyond the repair limit?

• The seller can agree to do the repairs over and above the repair limit.
• You can decide to terminate the contract and not proceed with purchasing the home.

What makes up my house payment? 

• Principal – The amount you are borrowing.
• Interest – Referring to interest on the remaining balance of the principal.
• Taxes – Real Estate taxes on the property.
• Insurance – Annual home owners insurance premium.

What is Escrow? 

Escrow is a way of transferring or exchanging property and/or money using a neutral third party.

What are Comps?

Information on comparable sales (comps) when trying to determine value of a target property.

What are closing costs? 

Miscellaneous fees charged by entities involved with the home sale (ex. lender fees, title search fees, surveyor, local government fees, etc.)