25 Questions About Buying and Selling Property Answered by Experts

General Questions

What is the Difference Between Freehold and Leasehold Property?

Freehold: You own the property and the land indefinitely.

Leasehold: You own the property for a set term but not the land; the lease can expire.

What is Title Insurance, and Do I Need It?

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Title insurance protects buyers and lenders from title defects, such as liens or disputes. It’s highly recommended for peace of mind.

What does a Real Estate Agent do?

Agents assist with negotiations, put up properties, and walk the buyer/seller through legal and financial processes.

How do I Determine the Fair Market Value of a Property?

Recent comparable sales (comps), appraisals, or professional valuations determine the worth of the property.

What is an Earnest Money Deposit?

A good-faith deposit by the buyer showing their commitment and applied to the purchase price at closing.

Legal and Documentation Questions

What Documents Are Needed to Sell a Property?

Title deed, sale agreement, property tax receipts, and proof of mortgage payoff (if applicable).

What is a Sale Agreement?

That is a legal document that expresses the agreement between the seller and buyer regarding the price, conditions, and deadlines of the sale of the house. What happens during the closing process?

Buyer pays; ownership is transferred. Sign deeds, hand over keys.

Do I Need a Lawyer to Buy or Sell Property?

Not in all jurisdictions, but a lawyer will ensure that all contracts and documentation comply with local laws.

What is a Property Disclosure Statement?

A document in which the seller lists known issues with the property, such as structural problems or boundary disputes.

Financing and Costs

What Are Closing Costs?

Service fees for a title search, insurance, appraisals, and legal work, typically in the range of 2 to 5% of the property.

What is Mortgage Pre-Approval, and Why Do I Need It?

 A pre-approval lets you know how much you can borrow, making your offer stronger.

Can I Sell Property with an Outstanding Mortgage?

 Of course, you can, but you have to apply the sale proceeds to pay off the remaining loan balance.

What are Capital Gains on the Sale of Property?

Tax that’s levied on the profit from selling real estate, although exemptions could be made for primary residences.

What is a Home Warranty and Should I Provide It to Buyer as Seller?

A home warranty pays for the repair of various systems or appliances. This will make your house even more attractive to buyer’s.

Inspections and Due Diligence

Is a Home Inspection Required?

Yes it helps to identify problems which buyer could use in negotiations or walk away from the sale.

What is an Appraisal, and Who Pays for It?

An appraisal is a determination of the value of the property, typically paid for by the buyer to secure financing. What is a Contingency in Real Estate Contracts?

A condition that must be met before the sale is finalized, such as securing financing or passing inspections. How Do I Handle Property Repairs Before Selling?

Fix major problems to add value and make it more attractive to buyers, but balance the cost of repairs against the potential increase in sale price.

What If the Property Has Legal Disputes or Liens?

Work out disputes or remove liens with the assistance of a real estate attorney before listing the property.

Negotiations and Offers

What Should I Include in a Purchase Offer?

Price, contingencies, deposit amount, closing date, and any other requests, such as appliances or repairs.

How Can a Buyer Negotiate a Better Deal?

Negotiate with comps, inspection results, or all-cash offers to buy the property at a lower price or better terms.

What If More Than One Offer is Made on a Property?

The seller has the right to select the best offer or present a counteroffer that increases the terms in favor of the seller.

Can a Buyer Withdraw Their Offer After it is Accepted?

Yes, but they may forfeit their earnest money deposit unless the contingency included allows withdrawal.

What Are Common Mistakes in Buying or Selling Property?

Failure to conduct due diligence, overpricing, ignoring market trends, and skipping legal reviews.

Conclusion

Buying or selling a property is a complex process that involves legal, financial, and market considerations. The following 25 common questions will help buyers and sellers make informed decisions, avoid costly mistakes, and ensure smooth transactions. Always consult professionals like real estate agents, lawyers, or financial advisors for personalized guidance.