Buyer FAQs

Start with research. Pull recent comparable sales (comps) in the neighborhood, your lender, an appraiser, or a real estate attorney can help you interpret them. Then write a clean offer: a strong price, a realistic closing timeline that works for the seller, and a manageable number of contingencies.

In a competitive market, your contingencies are often what makes or breaks the offer. Sellers see contingencies as risk, every one of them is a way the deal can fall apart or get renegotiated. The stronger your offer, the fewer contingencies you carry and the shorter the windows on the ones you do. Talk to your lender about whether you can structure the offer to look more like cash, some lenders offer programs where you make an all-cash offer up front and then convert to a mortgage after closing. If that's an option for you, it can be a meaningful advantage. Either way, work with your real estate attorney to figure out what protections you actually need and which ones you can safely reduce.

With FSBO sellers, a personal cover letter often carries real weight because you're dealing directly with the owner, not a listing agent. Move quickly once you're ready, serious FSBO sellers are motivated. Get your financing lined up before you make an offer so nothing stalls on your end.

Helpful next step: Get your financing in order through a lender in our Local Professionals directory.

Both paths are valid, it depends on your comfort level. Going direct to the seller will save money. There's no buyer's agent commission in the deal at all, and communication moves faster because there's no middle layer. It works best if you've bought a home before, have an attorney, and are comfortable reviewing contracts.

Important to understand if you do use a buyer's agent on a FSBO home: under the post-NAR-settlement rules, the seller may or may not be paying your agent's commission. So in a FSBO transaction, it's entirely possible that you will be paying that fee out of pocket yourself, on top of your down payment and closing costs. Your buyer-representation agreement spells out what your agent gets paid; whether the seller agrees to cover any of it is a separate negotiation.

If you need the service, by all means use an agent. Just know that there is a cost associated with it, and somebody is paying it, either the seller, you directly, or the seller indirectly through a higher sale price that gets built in to cover the commission. In that last case, you may have been able to negotiate a better price without an agent in the deal. Many buyers who go direct hire a real estate attorney for a flat fee to review documents instead, a smart middle ground that costs a fraction of an agent commission.

The NAR settlement didn't fundamentally change who can pay the buyer's agent, sellers, buyers, or a split, all of those were already legal. What it changed was the transparency and the default behavior around it. Before the settlement, buyer's-agent commissions were typically published on the MLS, and sellers commonly offered a 2 to 3 percent commission as a matter of standard practice. That offer was visible to every buyer's agent in the area, which made it feel mandatory even though it technically wasn't. Under NAR's settlement-related practice changes, which took effect on August 17, 2024, offers of broker compensation are no longer displayed on an MLS, though compensation can still be negotiated off the MLS, and MLS participants working with buyers must enter into written buyer agreements before touring a home. Broker fees and commissions remain negotiable. The mechanic is the same; the conversation about who pays is now happening more openly, and more sellers are considering whether to offer a buyer-side commission at all.

One of the practical advantages of selling FSBO is that the seller gets to decide on a case-by-case basis whether they'll contribute to a buyer's agent commission, based on the specific offer in front of them. A seller looking at a clean, full-price, no-contingency offer with a 2.5 percent buyer-agent commission attached might happily agree to pay it, the deal still works for them. The same seller looking at a low-ball offer with a stack of contingencies and a 2.5 percent commission attached might decline.

As the buyer, your job is to clarify this upfront, in writing, before your agent shows you the home. Your representation agreement should say what your agent gets paid; the purchase contract will say whether the seller is contributing any of it. Anything not covered by the seller, you cover.

Helpful next step: Our Buyers Guide has a full breakdown of the post-NAR settlement landscape and what to ask before signing any representation agreement.

An inspection contingency gives you the right to have the home professionally inspected and, if issues are found, to negotiate repairs, request a price reduction, or walk away with your earnest money returned. After your offer is accepted, you typically have 7–14 days to schedule and complete the inspection, hire a licensed inspector from our Local Professionals directory. Once you have the report, you can negotiate with the seller directly. In a FSBO transaction this is often straightforward since there are no agents playing telephone. Don't waive this contingency lightly, it's one of your most important protections.

Helpful next step: Find a vetted home inspector in our Local Professionals directory, or see FAQ #15 for guidance on contingency-free offers.

Earnest money is a good-faith deposit you make when your offer is accepted, showing the seller you're serious. It's held in escrow and applied toward your down payment or closing costs at closing. The typical amount is 1–3% of the purchase price, though in competitive markets buyers sometimes go higher. If the deal falls through due to a contingency you included in the contract (inspection, financing, appraisal), you generally get it back. If you back out for a reason not covered by a contingency, the seller may keep it. In a FSBO deal, make sure the earnest money goes into a neutral escrow account, not directly to the seller.

Helpful next step: See FAQ #12 on how escrow works, and find a title company to hold funds in our Local Professionals directory.

For most buyers, three contingencies are typical: a financing contingency (protects you if your loan falls through), an inspection contingency (lets you negotiate or exit based on the inspection report), and an appraisal contingency (protects you if the home appraises below the purchase price). A sale contingency may also apply if you need to sell your current home first. (Clear title is verified by the title company or closing attorney as part of the standard closing process, so it's rarely written as a separate contingency.)

Understand what you're giving up when you waive one. Contingencies exist because each one protects you from a specific worst-case outcome: your financing falling through and losing your earnest money, discovering major defects after you're contractually obligated, being asked to pay above the appraised value out of your own pocket, or being stuck owning two homes if your current one doesn't sell. Waiving a contingency does not make that risk go away; it just makes the risk yours. In a competitive market, sellers favor offers with fewer contingencies and shorter windows, so buyers often scale back to compete. That can be the right call, but only if you genuinely understand the exposure you're taking on. Walk through each contingency with your attorney before you drop or shorten it, and don't waive one you can't afford to lose on.

In a FSBO transaction, contingencies are written directly into the purchase agreement, so having a real estate attorney draft or review the contract is highly recommended.

Helpful next step: Our Buyers Guide includes a sample contingency checklist. Find an attorney to review your contract in our Local Professionals directory.

If you're financing the purchase (getting a mortgage), your lender will order an appraisal as part of the loan process, you don't arrange it yourself. The appraiser is chosen from an independent panel to prevent conflicts of interest. You, the buyer, typically pay the appraisal fee at or before closing; it usually runs $400 to $700 depending on the property and location. The appraisal protects your lender by confirming the home is worth what you're borrowing. If you're buying with cash, an appraisal is optional but still worth considering for your own peace of mind before committing to the purchase price.

Helpful next step: See FAQ #8 for what happens if the appraisal comes in low.

A low appraisal means the home appraised for less than the purchase price. Your lender will only finance based on the appraised value, which creates a gap that has to be made up somehow before the deal can close.

Your options:

• Ask the seller to reduce the price to the appraised value. The home appraised at what it's worth from the lender's perspective; that's a real number you can point to.
• Cover the gap yourself in cash if you have the resources. The home is still worth what you agreed to pay for it, you just have to bring more out-of-pocket money to make the deal work, because the lender won't finance above the appraised value.
• Split the difference with the seller. They reduce the price partway down; you cover the rest in cash. A common compromise.
• Appeal the appraisal. Look carefully at the report. If the appraiser used poor comps, missed key features of the home, or made what looks like a clear mistake, you can submit a reconsideration of value (sometimes called a ROV) through your lender, asking the appraiser to revisit the number. Not every appeal succeeds, but it's worth the effort if you genuinely believe the appraisal was off.
• Walk away, if you included an appraisal contingency in your offer. Your earnest money is returned.

In a FSBO transaction, these conversations happen directly between you and the seller, which sometimes makes it easier to reach a practical solution, no agents in the middle, no commission math complicating who can give what. Sometimes.

A title search is a review of public records to confirm the seller legally owns the property and that no one else has a claim against it, unpaid taxes, liens, judgments, or unresolved ownership disputes. A title company or real estate attorney performs this before closing. Title insurance protects you (and your lender) if a problem surfaces after closing that the search missed. There are two types: lender's title insurance (required by your lender any time you're getting a mortgage, without exception) and owner's title insurance (optional but strongly recommended). It's a one-time premium paid at closing that protects you for as long as you own the home.

Helpful next step: Find a title company in our Local Professionals directory, they handle both the search and insurance in most states.

Technically, pre-qualification is a quick, informal estimate based on self-reported numbers, and pre-approval is a formal review where a lender actually verifies your income, assets, employment, and credit and issues a conditional commitment letter. In practice, the two terms get used interchangeably in everyday business, and a letter labeled "pre-approval" doesn't always mean the lender did the underlying work.

What actually matters: find a lender that does the real work. You want a lender who will pull your credit, review your tax returns or W-2s, verify your income, verify your assets, and check your employment, and then stand behind the letter they issue. A lender who cuts corners isn't doing you any favors. They're setting you up for surprises later in the process: a higher rate than expected, a smaller loan amount than expected, or, worst case, a denial after you've already had an offer accepted.

A real, verified approval gives you three concrete advantages:

• Stronger offers. Sellers know the difference between a boilerplate letter and a real approval, and a seller in a competitive situation will choose the buyer they're most confident will actually close. (See Seller FAQ #26 on how sellers verify this.)
• A faster close. Because the lender has all your documentation on day one, they're not scrambling to chase paperwork after the contract is signed. The underwriting process moves much faster when the foundation is already in place.
• No surprises on terms. You go in knowing exactly what you qualify for and at what rate. You can compare lenders honestly, lock in a rate with confidence, and avoid mistakes that cost you money over the life of the loan.

The purchase price is what everyone focuses on, but the mortgage is what actually determines how much that home costs you every month and over 30 years. Get the strongest approval your lender offers. If your lender won't or can't issue a fully verified approval, find a new lender.

Helpful next step: Start your pre-approval with a lender in our Local Professionals directory.

Plan for 2 to 5 percent of the purchase price in closing costs on top of your down payment. These are general ranges, the most accurate number for your specific deal will come from your lender.

The Loan Estimate is your best tool. Once you've applied for a mortgage, your lender is required to provide you with a Loan Estimate (sometimes called a good-faith estimate, the predecessor name) within three business days. This document lists, line by line, exactly what you'll be paying for everything tied to the loan: application fees, points (interest paid upfront to lower your rate), the appraisal fee, lender origination and underwriting fees, title search and title insurance, recording fees, and prepaid items going into your escrow account, such as property taxes, homeowners insurance, and mortgage insurance if your down payment is under 20 percent or you have a government loan (FHA, VA, USDA). The Loan Estimate also gives you the cash-to-close number, the total dollar amount you'll need at the closing table.

Compare Loan Estimates from multiple lenders. Some fees are fixed (recording fees, transfer taxes), but lender fees vary, and even small differences add up over the life of a loan. Comparing estimates side by side is the single best thing you can do to control your costs.

Don't forget the costs that aren't on the Loan Estimate. As a buyer of a home, plenty of expenses live outside what the lender is tracking: moving costs, paint, immediate repairs, furniture, window treatments, new appliances if any aren't conveyed in the sale, utility connection fees, and the first month of being a homeowner generally. Build a buffer for these. Buyers who plan only for closing costs and down payment routinely find themselves stretched in their first few months in the house.

In a FSBO transaction you may save on certain fees since there are fewer middlemen, but the core lender, title, and government costs remain the same. Exact amounts vary by state, ask a licensed real estate attorney in your county for state-specific items.

Helpful next step: Ask your lender for a Loan Estimate as soon as you apply, it's the most accurate closing-cost breakdown for your specific deal.

The word "escrow" gets used two different ways in a home purchase. Both matter, and they're worth keeping straight.

1. Transaction escrow (during the sale). This is a neutral holding arrangement managed by a third party, typically a title company or escrow company, that holds funds and documents until all conditions of the sale are met. When you make an offer, your earnest money goes into escrow. During the transaction, the escrow officer collects the purchase funds, coordinates payoff of the seller's mortgage, and handles the transfer of deed and title. At closing, they disburse funds to all parties. Escrow requirements vary by state.

2. Mortgage escrow (after closing). Once you own the home, your lender may set up an ongoing escrow account and roll your property taxes and homeowners insurance into your monthly mortgage payment. The lender holds those funds and pays the tax bill and insurance premium on your behalf when they come due. This is standard on FHA, VA, and USDA loans, and required on conventional loans with less than 20 percent down. It smooths out big annual expenses into monthly amounts, and it protects the lender by making sure taxes and insurance stay current on the property backing the loan.

Helpful next step: Find a title or escrow company in our Local Professionals directory, they'll walk you through the process for your state.

When two or more people buy a home together, how you hold title matters. Joint tenancy means each owner has an equal share, and if one owner dies, their share automatically passes to the surviving owner(s), no probate needed. Tenants in common allows unequal ownership percentages and means each owner can leave their share to whoever they choose in their will. Married couples often prefer joint tenancy; unmarried partners, business partners, or situations with unequal contributions may prefer tenants in common. The right choice depends on your relationship, estate plan, and state law. If you're buying with a partner and want to make sure the vesting matches your goals (survivorship, unequal ownership, estate planning), this is worth a conversation with a real estate attorney before closing.

Helpful next step: Find a real estate attorney in our Local Professionals directory to advise on vesting before you finalize the purchase agreement.

Yes, the type of loan you use is about your qualifications, not the seller's listing method. FHA loans (low down payment, more flexible credit requirements) and VA loans (for eligible veterans and service members, often zero down) can be used to buy any qualifying property, including FSBO homes. The key difference: both loan types have stricter property condition requirements. An FHA or VA appraiser may flag repairs the seller must complete before closing. This can complicate negotiations in a FSBO deal, so it's worth discussing loan type and property condition with the seller early to avoid surprises. Being upfront builds trust.

One thing to think about in a competitive market: with FHA and VA loans, sellers sometimes worry about the stricter appraisal and condition requirements, and that can put your offer at a disadvantage against conventional or cash offers. There are ways to strengthen your position. Reduce or shorten contingencies wherever you reasonably can. Make a larger earnest money deposit. Talk to your lender about programs that let you structure your offer as cash, some lenders offer products where you submit a fully cash-equivalent offer upfront and then convert to your mortgage after closing. If you're eligible for one of those programs, it can level the playing field. Your real estate attorney should help you think through which protections you can safely scale back and which you need to keep.

Helpful next step: Connect with a VA- or FHA-approved lender in our Local Professionals directory to confirm your eligibility before making an offer.

A contingency-free (or "clean") offer means you're not asking for any protection clauses, no inspection, no financing, no appraisal outs. Sellers love them because they remove uncertainty. Buyers take on real risk: if the inspection reveals major problems or your loan falls through, you could lose your earnest money or be obligated to close anyway. Contingency-free offers make sense in extreme seller's markets if you have cash reserves, you've done a pre-inspection, and you deeply understand the property. For most buyers, especially first-timers, waiving all contingencies is not advisable. Waiving just one (like the appraisal contingency on a strong price) is a more measured approach.

Helpful next step: Review FAQ #6 for a breakdown of each contingency and what you're giving up, and consult an attorney in our Local Professionals directory before waiving any protections.

In practice, verifying that the seller actually owns the property is handled by the title company or your real estate attorney as part of the standard closing process. They perform a title search that goes through public records to confirm ownership, check the current deed, and look for liens, judgments, or unresolved claims against the property. That's their job, and it's a core part of what you're paying them for at closing.

If you want to do a quick sanity check on your own before making an offer, most counties publish property records online through the assessor or recorder's office, you can look up the address and see who's on the deed. If you're dealing with an estate, trust, or LLC as the seller, or if anything feels off, flag it to your attorney early so they can dig in before you're deep into the process.

Helpful next step: A title company will verify ownership as part of the closing process, find one in our Local Professionals directory.

Timing. Ideally, the final walkthrough happens with as much advance time before closing as possible, so any issues that come up can actually be cured. In practice, it often happens 24 to 48 hours before closing, and sometimes even the morning of closing day. The earlier you can do it, the better, but the most important thing is that you do it.

Purpose. The final walkthrough confirms two things: (1) the home is in the same condition as when you made your offer, and (2) any agreed-upon repairs were completed.

If you find issues. If you find new damage, missing fixtures, incomplete repairs, or anything that doesn't match the contract, your options include: negotiate a credit at closing, hold funds in escrow until repairs are done, delay closing, or in serious cases refuse to close. Document everything with photos. Anything that comes up at the walkthrough should be reviewed with your real estate attorney before you sign at closing, do not try to work it out informally on the day.

Get the contract right upfront so the walkthrough is simple. The walkthrough is a lot smoother if the contract is specific about what's conveying with the home. Don't assume anything stays just because it was there when you toured. If you're expecting the refrigerator, the washing machine, the dryer, the dining-room chandelier, the curtains, the wall-mounted TVs, or any other personal property to remain in the home, it must be listed in the purchase contract. "Don't assume" is the rule. The cost of litigating a missing appliance or fixture after the fact is rarely worth what it would cost to replace, so dot your I's and cross your T's in the contract, and then verify against that contract on the walkthrough.

One more practical note: do the walkthrough after the seller has moved out and broom-swept the home, not before. Moving is a process during which things get bumped, scratched, dented, and damaged, and you want to see the home in its actual delivered condition, not its pre-move condition.

Helpful next step: Our Buyers Guide includes a final walkthrough checklist to help you stay organized on the day.

The closing process itself is the same whether the home is sold with a real estate agent or by owner. The mechanics, document signing, fund disbursement, deed recording, are handled by a title company, escrow company, or real estate attorney (required in some states), regardless of how the home was listed.

What's different in a FSBO deal: the small operational tasks that agents normally handle. In a traditional sale, listing and buyer's agents quietly coordinate a lot of small but essential items in the days leading up to closing, smoke and carbon-monoxide detector certifications (required in many states), final utility readings, key handoffs, lockbox removal, scheduling the walkthrough, confirming the seller's move-out timing, and so on. In a FSBO transaction those things still have to happen, they just don't happen automatically. Your attorney is doing most of the legal and contractual work, but you should sit down with them well in advance and get a clear list of: what you need to handle yourself before closing, what your seller needs to handle, and what the attorney is taking care of. That conversation will save you from a last-minute scramble.

The mechanics. A few days before closing, you'll receive a Closing Disclosure from your lender outlining all final costs. At closing, you sign loan documents, pay your down payment and closing costs, and the deed is recorded. The seller receives their proceeds. The whole signing session typically takes 1 to 2 hours. In some states, buyer and seller sign separately (a "dry close"), this varies by state, so check with a licensed real estate attorney in your county.

Helpful next step: Find a title company or closing attorney to manage your FSBO closing in our Local Professionals directory.

Expect a significant stack of paperwork. The core documents include: the Closing Disclosure (a final accounting of all costs), the promissory note (your promise to repay the loan), the deed of trust or mortgage (secures the loan against the property), the deed (transfers ownership to you), and various lender certifications and disclosures. If you're buying in cash, the paperwork is much lighter, primarily the deed and settlement statement.

The stack can feel overwhelming if you see it for the first time at the closing table. The best way to make closing day feel manageable is to go through the documents in advance. Most closing documents are available a few days ahead of closing, you have the right to receive the Closing Disclosure at least three business days before closing, and your attorney can usually get many of the other documents ahead of time too.

If you like to read everything yourself, ask for the documents in advance and go through them at your own pace. If you'd rather have someone walk you through them, ask your attorney to set aside time before closing to review anything you're unsure about. Either way, the goal is the same: come into the closing already understanding what you're signing, so that on the day, you're really just confirming amounts on the settlement statement and dotting I's and crossing T's. Read before you sign, don't let anyone rush you.

Helpful next step: Our Buyers Guide has a complete closing document checklist so you know what to expect before you walk in.

In most cases, you get the keys the same day as closing, once funds have been officially disbursed and the deed has been recorded. In a "dry close" state, where recording happens the next business day, you may not receive keys until recording is confirmed, which could be the following morning. The exact timing should be spelled out in your purchase agreement.

If the seller needs extra time to vacate, the situation is typically handled through a post-closing occupancy agreement, sometimes called a rent-back or a use and occupancy agreement. This is essentially the seller renting the home from you for a defined period after closing. The terms, how many days, daily rate (if any), who's responsible for utilities, what happens if they overstay, all of it needs to be negotiated and put in writing in advance, ideally as part of the original contract or as a clear addendum.

Ideally, you avoid post-closing occupancy entirely, the cleanest version of a deal is: seller vacates by closing, you get the keys at closing, done. But there are times when a rent-back or use-and-occupancy arrangement is genuinely beneficial for both sides, the seller needs a few extra days to coordinate their own move-in elsewhere, or you'd rather close on a specific date and let them stay briefly than push the closing date back. Just don't get into it informally. Put the terms in writing, work with your attorney, and protect yourself in case the seller doesn't leave on schedule.

Don't assume you're getting keys at closing until your closing agent confirms disbursement and recording are complete.

Helpful next step: Discuss key transfer timing with the seller early and put it in writing as part of the contract.

Yes. Anyone can browse search results and see basic listing info, but viewing the full listing, all photos, full description, exact address, contact options, requires a free buyer account. Creating an account is free and takes about 30 seconds. We don't share your info with sellers until you reach out to them.

Helpful next step: Create a free buyer account to unlock full listings and saved-search alerts.

Yes. From any search results page, click “Save Search.” We name the search from your active filters (location, price range, beds), and the moment a new listing matching your criteria goes live, we email you, so you hear about new matches before you'd ever find them by scrolling. You can save as many searches as you want and manage or delete them anytime from your dashboard.

Helpful next step: Run any search, then click “Save Search” at the top of the results.