Frequently Asked Questions About Real Estate in NWA

This really depends on what you expect from your agent. If you're looking for consistent communication and personal service, I strongly recommend you hire an exclusive agent – not a team.

I always suggest that a home buyer or a home seller interview at least two or three different agents before deciding who you're going to hire to represent you for your real estate transaction.

Agents work very differently and you should select an agent that best fits your needs. Some agents only work with sellers, and some only with buyers. I work with BOTH buyers and sellers.

Some agents have an abundant number of online reviews whereas other agents have none or have no recent reviews. I believe this is very important to research potential agents for their online presence and amount of current and past reviews, and of course the quality of the reviews. Look for large gaps in reviews or inconsistencies.

The number of reviews can reflect the amount of business that the agent has done recently as well as in the past. Look for both consistency over the years as well as recent reviews and if there are any gaps.

How many home purchases and/or home sales have you done in the last two years.

• How long have you sold real estate in the area?
• Do you represent only Sellers, Buyers or do you represent both?
• What is the average price that you sold? 
• How do you communicate to your clients?

• Repeat clients
• Past client referrals
• Online reviews
• Social media
• Friends
• Referrals from agents outside our market
• Personal network (church, gym, sport teams)

Yes, commissions are and have always been negotiable. Let me share with you what I do to earn my Commission when representing a buyer or representing a seller or representing both. There are different skill sets that apply to each.

This is a great question and a very important question as well. Very simply earnest money is refundable and is held in escrow and credited to the buyer at closing. Whereas a non-refundable deposit is money sent from the buyer to the seller and is non-refundable. There are benefits to both the buyer and the seller. Bottom line though the non-refundable deposit I would consider significant “skin in the game.”

Yes absolutely. The buyer needs to know what they are qualified to purchase. And the pre-qualification letter should be sent with an offer to purchase so the seller can review and know that the buyer is qualified to purchase the home. I would like to see a pre-qualification letter from a local lender, but this is not a requirement.

Ask me why I like to see prequalification letters from a local lender!

There is a difference in what mortgage companies can offer in terms of loan type, terms, service. I strongly suggest visiting with your real estate agent regarding experiences they've had with different lenders.

A local lender is best for some. An online lender is best for others. Always compare "apples to apples" when researching.

Yes, lenders offer many different rates and fees that you should consider. I recommend at least checking with one local lender but make sure you're comparing ‘apples to apples’ because the fees can really differ from lender to lender.

It has always been important, and it has been increasingly important that a buyer begins this process early on during the contract period. Insurance rates have increased significantly, which has caused some contracts to be terminated due to underestimating the cost of homeowners’ insurance. Further, it can really make a difference which insurance company you are engaging with. It's important to know also that the insurance history of the property and the insurance history of the buyer - both affect the rate that an insurance company can offer.

The answer to this question can vary based on the property and the seller’s motivation. Generally, though I am not a fan of listing the house low to generate multiple offers and bidding wars. Generally, I recommend listing the home at market value.

This is called dual agency, and it is allowed in the state of Arkansas whereas some states do not allow dual agency representation. I do quite a few dual agency transactions and have never had an issue with this type of representation. It is difficult, however, for some agents to do dual agency and they often avoid it.

Yes, I strongly believe in open houses. They bring a lot of value to both the buyer and the seller. Some agents will tell you that ‘open houses don't work’ and that is correct unless you do open houses. It's a great opportunity for the seller’s agent to get direct feedback from the public during the open houses that then can be shared with the seller.

Again, you should conduct several interviews with different real estate agents to determine who is the best fit for you.

Seller’s property disclosures are not required in the state of Arkansas. In some cases, a seller will choose not to complete a disclosure perhaps because they've never occupied the property themselves. But in situations where the seller was occupant then the seller’s property disclosure is very important that it be completed accurately. That said, however, a buyer should always do their due diligence when inspecting the property with a home inspection or a third-party inspection because not all sellers property disclosures necessarily represent the property correctly. Also, it is very important that the seller completes the disclosure accurately.

Again, reviewing the Seller’s Property Disclosure is important but it does not cover all items a buyer should consider when buying a home. A home-buyer and their agent should do their due diligence when researching the home to include but not limited to sexual offenders, school district, flood zones, easements, future land zoning and development, etc…

I certainly would ask my buyer’s agent for several recommendations of home inspectors. I would also do my own research when interviewing potential home inspectors. You can look at their qualifications, their reviews, their reports, etc.…

This is a new issue with AI altered photos, photoshopped photos. We as agents are bound to properly represent the property. Removal of items like power lines, poles, and other undesirable features is NOT allowed, but… I tell all my clients when seeing homes on-line to not 100% trust the pictures. Sometimes my clients are disappointed when they tour the homes and sometimes the pictures do not do it justice. You must see the home in person.

When a buyer, I’m representing is looking at both new construction and resale homes, I always make it clear that, “When buying a new home, you expect everything to be new… When purchasing a resale home, you expect everything to work properly but not new.” Usually, the costliest items with a home include the roof, HVAC, water heater. The listing agent should disclose the age of these, and other, features of the home.

The costs of replacing, repair, etc., can vary significantly. This is something you should know beforehand.

There are a lot of what if’s with this question. Very simply though, in these current market conditions, an offer contingent upon the sale of another home is not a strong offer. That said, however, with the home that has been on the market for multiple days this may be a realistic option for both the buyer and the seller period.

There are many different strategies to determine whether multiple offers are present or not. Some feel that the only real strategy is the contract price. I beg to differ. There are numerous terms that are important to a seller and of course the buyer. These strategies include but are not limited to the following: 

a.       Days to closing

b.       Non-Refundable Deposit and amount of deposit vs Earnest Money

c.       Inspection period – defaults to 10 business days but can be shorter

d.       Buyer agent commission %

e.       Pre-Qualification letter and amount of qualification

f.         Delayed occupancy allowing seller to stay after closing

g.        Buyer inspection but will NOT ask for repairs

h.       Appraisal clause – buyer will pay up to $ ____ should appraisal come in low

These strategies include but are not limited to the following:    

• Days to closing
• Non-Refundable Deposit and amount of deposit vs Earnest Money
• Inspection period – defaults to 10 business days but can be shorter
• Buyer agent commission %
• Pre-Qualification letter and amount of qualification
• Delayed occupancy allowing seller to stay after closing
• Buyer inspection but will NOT ask for repairs
• Appraisal clause – buyer will pay up to $ ____ should appraisal come in low