Thank you for considering KC abode Team to help find your dream home! Below is a list of some interview questions and my answers to help you get the ball rolling.
Experience Questions
How many people are you currently assisting in finding a house? On average, I usually have at least 3 or 4 buyers that I actively work with at a time. That will change seasonally and our team is set up to manage the needs of buyers in this market. We have three licensed showing agents, so if we ever have a conflict for a time you want to see a house, we always have back up! We also have a transaction coordinator that handles most of the paperwork aspect once you have found your home and progressed to buying it. This helps alleviate our time to accommodate more showings and negotiations to get to that point!
How many homes on average do you show your buyers? This depends on the market. In a buyers’ market, there are more homes to see and buyers on average will see 5 to 15 homes. In a sellers’ market, it’s usually closer to 5 homes. Our goal is always to find the home within 5 homes in either market because we have honed in on exactly what the buyer has requested.
Do you specialize in certain areas of town? We have sold homes from Johnson County, Leavenworth County, Wyandotte County and Jackson County.
Do you have a price-range you specialize in? No, we have experience in the $100K price range all the way to $2M price range (and everything in between). We are in the business to help people, no matter the price range.
How do you stay up on current trends? Do you take classes or frequently attend training? We attend classes weekly. And we are in an office with 225+ agents and leaders in our market. If something is happening or about to happen in the market, we most likely know about.
Price/Financing Questions
How do we know if this is the right time to buy? This is a question that we will help each individual buyer analyze. Considerations will include whether you have been renting or own a home. If renting, I’ve helped too many buyers choose the right area to make money on homes in a 3-5 year period, just on appreciation alone. Many times it’s more money than clients have in their IRAs or 401Ks. Real estate can be such a great investment, especially in this market!
Will you help us decide if our desired price range is appropriate? Can you help us choose a good price range? This part of the process is where we lean on my favorite loan officer to help guide you. And we will help guide you on what areas are best for the price range in which you are pre-approved. We also advise to choose a price range with a monthly payment in which you are very comfortable paying and be as conservative as possible. We want homeownership to empower you, not stress you out when you make your monthly payment.
How will you help us determine if our down-payment is appropriate? This will depend on the financial and real estate market. In a sellers market, the more down on your offer will communicate to the seller that you are a strong buyer and will help us when we are competing against other offers. However in a buyers market, when negotiations are in favor of the buyer we may not need as much down.
How can you help us determine if an offer we make is good one? When you want to make an offer on a home, we will discuss the sold prices of comparable properties and current market conditions. I also have the advantage that I’m with an office with more than 225 agents and involved in many transactions throughout the year, so we can help you write an offer according to the negotiation style you want and rate of success you desire.
How will you leverage the best deal for us? We will discuss reasonable expectations for the definition what getting a “deal” in our current market means.
How will you handle multiple offers? Thankfully, we are very successful at winning in multiple-offer situations for our clients. We have some strategies that we can discuss and implement if you like. Remember, you are the boss. We are going to present to you all of the options and tell you which one we think is best and then you are in charge of deciding how we handle the multiple offer based on our consultation.
Tell us about the inspection process. How do we renegotiate the offer if the inspection reveals a problem? Will you attend our inspection? We have a list of inspectors that we work with regularly. We will get bids and availability from them and then let you choose whom you want to move forward with (unless you have an inspector you would like to use already). We attend the inspection. We do recommend buyers attend the inspection to learn more about the home. If repairs are necessary, this is how I suggest we negotiate: 1. Our client’s safety is of the utmost importance to us. If anything on the report needs to be repaired that may affect your safety when you move in the home. Then these are items that must get fixed. 2. Any repairs that are lender required. 3. We will get you estimates on the repairs, so we can either ask the seller to make the repairs or discount the sales price or give you money towards closings costs so that you may monitor the repairs when you own the home.
What are the average closing costs your buyers have had recently? Are there possible hidden/ costs we might encounter? Average costs to buy a home to expect will be 2-3% of the home value that you will need to bring to closing on top of your down payment. The lender will give you an estimate showing you all of the fees involved. Some of those costs involve setting up the escrow account so that the mortgage bank can pay your tax bill at the end of the year that you essentially pre-paid at closing with in your costs. Other costs to expect, depending on the size and age of the home $380-$450 for home inspection, +$500 if home is on septic (pumping and inspection), radon test $120, sewer scope $180, chimney scope $180, swimming pool $250, $500-$600 for appraisal once under contract (possibly more if a rush fee is needed or it is a luxury property of $1 Million plus). At least 1% of sales price will be needed for an earnest money check (this will be credited back to you at closing and more may be needed if competing in multiple offers).
Misc. Questions
How are you compensated? The Seller’s Agent/Broker pays me a commission when the home closes because it provides the most economic benefits for both buyers and sellers, creates greater access and equity for all buyers.
Will you always be the one showing us houses and contacting the seller’s agent? Correct. My licensed showing partner may show you some homes if I am not available.
How accessible are you since we may have to act within hours on a property? How often will we talk to you? You can text/email/call us anytime.
How much notice do you need if we want to look at a home? Most homes require an hour. Some require up to 24 hours. As much notice as we can give, the better.
What are your negotiation techniques? Our first priority is to present you with the different options and strategies I can use to negotiate on your behalf and then you will choose which strategy you want to implement (we will tell you which one I think is best, of course). Point is that we will not negotiate a certain way without your permission. We hold your interest above our own and we have a fiduciary duty to you.
How will you search for properties that may not be listed in MLS (those sold by the owner)? We are always on the hunt for “coming soon” properties. We will also call other dominant and active agents in the area to find these properties. It also helps we are with a big office and company.
How do you represent us in a for sale by owner situation? Many FSBO sellers are still offering to pay a commission to buyer’s agents in our market. Let us call on your behalf to get more information and set up a showing. If the FSBO seller does not want to work with agents, we can step back and still help keep you protected through the process. We’ve been very successful working with FSBO sellers and our clients to make a deal work.
What about foreclosure situations? How do those work? In my opinion, the least risky foreclosures to buy are the ones listed in the MLS by an REO specialist. We will set up a private website for you to view homes and this will also include foreclosure homes on the market and we will email you as new properties are listed or prices are adjusted. If you want to pursue bidding on foreclosures posted on the county courthouse steps, we suggest buyers have a lot of cash on hand for this type of purchase and are comfortable purchasing a home without viewing it first and without title insurance. And another thought to add to this question, many of the foreclosures in our market are homes that were rejected by the market when the owners tried to sell before foreclosure. We often see history repeat itself in this business and this should be seen as a warning that if you bought that foreclosure property, you may face the same fate you if you needed to sell (depending on the market, of course).
Do I need a Realtor when I buy a new home? Anytime you a buy a home, new or resale, hiring a Realtor with experience to look after your best interests through the process is a must! New homes especially come with unique challenges throughout the process. You can make so many mistakes while building a home or buying a spec home (from picking the wrong lot, over-improving the home, risking earnest money before you know the final cost of your home…that one is my favorite that many builders like to do to buyers in our market.)
Final Questions
What expectations do you have of us as the buyer? The best thing that buyers can do for themselves is ask all the questions you have. We try to communicate all the things that can derail you being able to buy a new home, but there are still times when a question wasn’t asked and a new car or fridge is bought before closing and there is no way to salvage after that! We are not the type of agents that will pressure you into buying a home. We want to give you all of the information you need to make the best decision for yourself and your family. Buying a home is a journey and we want to make it as pleasant and smooth as we can for you.