05/02/2026
Q&A - Real Estate, San Jose CA & Silicon Valley Area - Arpad Racz, Broker Associate - Altas Realty
https://www.aracz.com/fine/real/estate/q_a___real_estate/custom/QA--Real-Estate
Buyers – Questions & Answers
1. How do I get pre‑approved for a mortgage?
Contact a local lender; I can connect you with vetted partners who can issue a pre‑approval in 24‑48 hours.
2. What is the typical down‑payment amount?
As low as 3.5%, but 20% down is common in our area.
3. Which neighborhoods have the strongest resale value?
Areas with limited inventory—Cambrian Park, Rose Garden, and Willow Glen—show the highest appreciation.
4. How long does a standard purchase take?
30‑45 days from accepted offer to closing, assuming no major contingencies.
5. Should I schedule a home inspection?
Yes. An inspection protects you from hidden defects and strengthens any negotiation.
6. What are typical closing costs for buyers?
2‑5 % of the purchase price, covering loan fees, escrow, title insurance, and recording fees. Check with your Lender & Escrow Company.
7. What is earnest money and how much should I deposit?
A good‑faith deposit (usually 3 % of price) that shows seriousness and is credited at closing.
8. How does a buyer’s pre‑approval strengthen my offer?
It proves financing ability, reducing seller worry about loan denial.
9. What is a contingency and which should I include?
A condition that must be met for the contract to stay binding—common ones are financing, inspection, and appraisal. Ask your Arpad for details.
10. Should I submit an offer below list price?
If the home has been on market >30 days or needs repairs, a lower offer can be justified in some cases.
11. What is an escalation clause?
A clause that automatically raises your offer by a set amount up to a maximum if higher bids appear.
12. How can I protect my earnest money?
Deposit it with a reputable escrow company; it’s often refundable if contract conditions aren’t met, depending on your circumstances.
13. What is a “cash offer” and why does it matter?
Cash removes financing risk, often leading sellers to accept a lower price or quicker closing.
14. Should I get a home warranty?
A 1‑year warranty can cover major systems and make the purchase more appealing.
15. How does a short sale differ from a foreclosure?
A short sale requires lender approval to accept less than the owed balance; foreclosure is bank‑owned.
16. What is a “lock‑in” rate?
Your lender guarantees a specific interest rate for a set period (usually 30‑60 days) before closing.
17. How do property taxes get calculated?
Approximately 1.1 % of assessed value annually, plus any special assessments. Varies by locality.
18. Should I buy a fixer‑upper?
If you have a realistic renovation budget and timeline, a fixer can provide strong equity gains.
19. What is a “title search”?
A review of public records confirming the seller’s clear ownership and revealing any liens.
20. How important is a Walk Score?
High scores (>80) increase property desirability and resale potential.
21. What are the pros and cons of a condo vs. single‑family home?
Condos have lower maintenance but HOA fees; single‑family homes offer land and privacy.
22. How can I estimate my monthly housing cost?
Mortgage principal + interest + taxes + insurance + HOA (if any) = total monthly payment.
23. What are “points” and should I buy them?
Points are prepaid interest; buying 1 point typically reduces the rate by 0.25 %. Ask your lender for details.
24. How does an appraisal affect my loan?
The lender must verify the home’s value meets or exceeds the loan amount; a low appraisal can stall or reduce financing.
25. Do I need a real‑estate attorney?
Not required in California, but I can coordinate with attorneys for complex transactions.
26. What is a “contingent offer”?
An offer that becomes firm only after specific conditions—like financing or inspection—are satisfied.
27. How many showings does the average buyer attend?
Typically 5‑12 homes before narrowing to a favorite.
28. What does “as‑is” mean?
The seller will not make repairs; the buyer accepts the property’s current condition.
29. Can I buy a home sight‑unseen?
Yes, with virtual tours, a thorough inspection contingency, and a trusted agent. However not recommended.
30. How can I make my offer more attractive without raising price?
Increase earnest money, shorten escrow, waive unnecessary contingencies, or offer a quick closing.
31. What is dual agency?
One agent represents both buyer and seller, which can create conflicts of interest.
32. How do I lock in a closing date?
Negotiated in the contract.
33. What is a settlement statement?
A HUD‑1 or Closing Disclosure that itemizes all costs for buyer and seller.
34. Should I request a second appraisal?
If the first is significantly low, a second opinion can protect your financing.
35. How do I calculate ROI on a rental property?
(Annual net cash flow ÷ total cash invested) × 100 % = ROI.
36. What is a “buyer’s agent”?
A licensed professional who represents your interests exclusively throughout the purchase.
37. How does a VA loan work?
Eligible veterans can finance 100 % of purchase price with no down payment and no PMI.
38. What is a “price reduction” strategy?
A modest decrease (often 2‑5 %) after low activity to reignite buyer interest.
39. What is a “homeowners association (HOA) fee”?
A monthly/annual charge often covering shared amenities and common‑area maintenance.
40. How can I protect against future property damage?
Obtain comprehensive homeowners insurance and consider flood or earthquake riders if applicable.
41. What documents should I review before signing?
Purchase agreement, disclosures, title report, loan estimate, and any HOA documents.
42. How does the “market” (buyer’s vs. seller’s) affect my strategy?
In a seller’s market, act quickly and consider escalation clauses; in a buyer’s market, negotiate price and terms.
43. What is a “walk‑through”?
Final inspection 24‑48 hours before closing to verify agreed‑upon condition.
44. How many days before closing can I back out?
If a contingency isn’t met (e.g., inspection), you can terminate without penalty before the contingency deadline. Ask agent for more details.
45. Should I factor in future resale potential?
Yes; consider location trends, lot size, and neighborhood development plans.
46. What is the role of the escrow officer?
To hold funds, manage documents, and ensure all contract conditions are satisfied before closing.
47. Can I negotiate seller‑paid closing costs?
Yes; a common concession is a credit of up to 3 % of the purchase price.
48. What is a “repairs credit”?
Seller provides a cash amount at closing for the buyer to perform repairs after purchase.
49. How does a “home equity line of credit (HELOC)” affect buying?
A HELOC can be used for down‑payment or renovation funds, but lenders will consider the debt load.
50. Should I get a pre‑inspection before making an offer?
Optional; it can give you leverage, but most buyers rely on the standard inspection after offer acceptance.
51. What are “property condition disclosures”?
Seller‑provided statements about known defects.
52. How does a “buyer’s market” influence pricing?
Homes often sell below list; buyers have more negotiating power.
53. What is “private‑mortgage‑insurance (PMI)?”
Insurance required when down payment is
