Knowledge Base
Real Estate FAQ.
Straight answers to the questions buyers, sellers, and military families ask most.
What does a REALTOR® do?
A REALTOR® guides buyers and sellers through every step of a real estate transaction — from pricing and negotiation to contracts and closing.
How do real estate agents get paid?
Real estate agents are paid on commission — typically a percentage of the sale price, paid at closing. Since 2024, buyer agent compensation must be disclosed and negotiated upfront.
Should I buy or rent in Central Texas right now?
It depends on your timeline, financial position, and stability. In Central Texas, buyers with 3+ year horizons generally build more wealth buying than renting at current price levels.
What is a buyer's market vs. a seller's market?
A seller's market means more buyers than available homes — prices rise and sellers have leverage. A buyer's market means more inventory than demand — buyers have negotiating power. Most markets sit somewhere in between.
What is earnest money?
Earnest money is a deposit made by the buyer at the time of contract to show serious intent. In Texas, it's typically 1% of the purchase price.
How long does it take to buy a house?
From offer to closing, expect 30–45 days in most cases. Finding the right home can take 2 weeks to several months depending on the market.
What credit score do I need to buy a house?
Most conventional loans require a 620+ score, FHA loans accept 580+, and VA loans have no official minimum — though most VA lenders prefer 580–620 or higher.
What's the difference between pre-qualification and pre-approval?
Pre-qualification is an estimate based on what you tell a lender. Pre-approval is a verified commitment based on documents — and it's what sellers actually respect.
What is a buyer's agent and do I need one?
A buyer's agent represents your interests in a purchase — helping you find homes, structure offers, and negotiate on your behalf. Since 2024, buyer agency agreements are required upfront.
What is a home inspection and do I need one?
A home inspection is a professional evaluation of a home's condition. In Texas, buyers have an option period specifically designed for this — and skipping it is almost always a mistake.
What closing costs do buyers pay in Texas?
Texas buyers typically pay 2–5% of the loan amount in closing costs, including lender fees, title fees, prepaid taxes, and insurance. VA buyers have limits on what they can be charged.
What is a home appraisal and why does it matter?
A home appraisal is an independent valuation of a property by a licensed appraiser. Lenders require it to confirm the home is worth what they're lending against it.
What is title insurance and do I need it?
Title insurance protects you against defects in the legal ownership chain of a property — things like unknown liens, errors in public records, or prior ownership disputes. In Texas, most lenders require it and sellers typically pay the owner's policy.
What is PMI and how do I avoid it?
PMI (private mortgage insurance) is a monthly fee charged when you put less than 20% down on a conventional loan. VA loans have no PMI. For conventional buyers, it can be avoided with a larger down payment or eliminated once equity reaches 20%.
What is a contingency in real estate?
A contingency is a condition in the purchase contract that must be met for the deal to move forward. If the condition isn't satisfied, the buyer can typically exit the contract without losing their earnest money.
What is escrow in real estate?
Escrow is a neutral third-party arrangement where funds and documents are held until the conditions of a transaction are met. In Texas, the title company typically serves as the escrow agent.
How much does it cost to sell a house in Texas?
Most Texas sellers pay 6–10% of the sale price in total costs, including agent commissions, closing costs, and any repair credits.
How do I price my home to sell?
Pricing a home correctly means analyzing recent comparable sales, current inventory, and buyer demand — not picking a number based on what you want to net.
What is a seller's disclosure in Texas?
Texas law requires sellers to disclose known material defects about their property using the Seller's Disclosure Notice — a multi-page document covering the home's condition, systems, and history.
How long does it take to sell a house in Texas?
A well-priced, well-prepared home in Central Texas typically goes under contract within 2–3 weeks. Closing takes another 30–45 days. The full process is usually 45–75 days from list to close.
What repairs should I make before selling my home?
Focus on repairs that affect buyer perception, inspection outcomes, and lender approval — not cosmetic upgrades that rarely return their cost.
What happens at closing as a seller?
As a seller, closing is where you sign documents transferring ownership, your mortgage is paid off, and you receive your net proceeds — usually via wire transfer.
Do FSBO homes sell for less than agent-listed homes?
Yes — consistently and significantly. FSBO homes sell for a median of 23–26% less than agent-listed homes, according to NAR data. On a $300,000 home, that gap is $69,000–$78,000.
What are the risks of selling your home FSBO?
FSBO sellers face real legal, financial, and logistical risks — from disclosure liability and contract errors to accepting unqualified buyers and losing negotiating leverage at every stage.
Why can't I just list my house on Zillow myself?
You can post on Zillow as an owner — but without MLS access, your home won't reach the full buyer pool. Most serious buyers are still found through MLS-connected searches and buyer's agents.
How does a REALTOR® justify their commission?
A good agent's commission is justified by the price premium they produce, the problems they prevent, and the time and liability they absorb — not just by the hours they spend.
What is a VA loan and who qualifies?
A VA loan is a mortgage backed by the U.S. Department of Veterans Affairs, offering eligible service members and veterans the ability to buy with no down payment and no PMI.
What is BAH and can I use it to buy a home?
BAH (Basic Allowance for Housing) is a monthly housing benefit paid to eligible service members. It can be counted as income on a mortgage application, and for many military buyers it covers a significant portion of their monthly payment.
Can I rent out a home I bought with a VA loan?
Yes — but you must initially occupy the property as your primary residence. After you've established occupancy, you can rent it out, including after a PCS move.
What is a PCS move and how does it affect buying a home?
A PCS (Permanent Change of Station) move relocates a service member to a new duty station. It creates a compressed buying timeline, housing decisions with incomplete information, and — for homeowners — the question of what to do with their current property.
Still have questions?
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