10 Common Questions Asked By Real Estate Agents

Real estate agents face various challenges—from navigating tricky transactions to staying ahead in a competitive market.

Whether you have 15 years or 15 days of experience, there are often questions that make you pause and dig a little deeper.

In this post, we’re tackling 10 of the most common questions real estate agents ask, offering definitions, examples, and practical tips agents of all experience levels can use to navigate an ever-changing climate with confidence.

1. How do I handle multiple offers when selling a property?

When handling multiple offers on a property, start by reviewing each offer carefully, considering not only the price but also contingencies, financing terms, and closing timelines.

Communicate openly with all buyers, giving them the chance to submit their highest and best offers. Work closely with your seller to prioritize their goals, such as speed of closing or minimizing contingencies. Finally, stay professional and ethical by ensuring all parties are treated fairly and informed throughout the process.

2. What are closing costs?

Closing costs are expenses and fees paid to finalize a property transaction. They typically include service charges like title searches, appraisals, home inspections, loan origination, escrow fees, property taxes, and attorney fees. Buyers and sellers may each pay a portion of these costs, which generally range from 2% to 5% of the buyer’s purchase price.

Here are some common closing costs:

For Buyers:

Loan Origination Fee: Charged by the lender for processing the loan application.

Appraisal Fee: Paid to assess the property’s market value.

Home Inspection Fee: This covers the cost of a professional inspection to evaluate the property’s condition.

Title Insurance and Search Fees: Protects against potential ownership disputes or title issues.

Escrow Fees: Paid to the third party managing the transaction.

Prepaid Expenses: Includes property taxes, homeowners insurance, and mortgage interest.

Mortgage Insurance (if applicable): Required if the conventional loan’s down payment is less than 20%.

Recording Fees: Charged by the local government to record the property’s sale.

For Sellers:

Agent Commissions

Transfer Taxes: A fee paid to transfer property ownership.

Title Insurance for the Buyer: Often covered by the seller in some states or negotiated as part of the sale.

Outstanding Liens or Mortgage Payoff: Any remaining loan balance or liens on the property must be cleared.

Escrow or Closing Fees (Seller’s Portion): Shared with the buyer, depending on local practices.

3. What is a comparative market analysis (CMA)?

A comparative market analysis (CMA) is a process real estate agents can use to determine a property’s market value. It is done by comparing a subject property to similar properties that have recently sold nearby.

CMAs take into account key factors like size, condition, location, and features to deliver a data-driven pricing estimate. While CMAs are often used to help sellers set listing prices or guide buyers in making competitive offers, they are not a substitute for formal appraisals and should instead serve as a benchmark for estimating property values.

Related: What Is a Comparative Market Analysis (CMA)?

4. How do I fill out a purchase agreement?

Filling out a purchase agreement involves careful completion of each document section of the contract, and it outlines the terms of the real estate transaction. Here’s a quick overview:

Buyer and Seller Information: Start by entering the names and contact details of both parties.

Property Details: Include the property address, legal description, and parcel number (if required).

Purchase Price and Financing: Specify the offer price, earnest money deposit amount, and details about the buyer’s financing method (e.g., cash or loan).

Contingencies: Add conditions such as inspections, appraisals, or loan approval that must be satisfied for the sale to proceed.

Closing Date: Specify the expected closing date and possession date for the property.

Disclosures: Attach or reference required disclosures, such as lead-based paint or seller’s property condition reports.

Signatures: Both parties must sign and date the agreement to make it legally binding.

Key Points to Keep in Mind

Double-Check Legal Descriptions for Accuracy: Mistakes made during this step can cause transaction delays.

Be Clear and Specific: Avoid vague language—details like deadlines, amounts, and terms should be clear and concise to prevent misunderstandings.

Include All Addenda: Attach all required addenda or riders, such as contingencies for inspections, financing, or seller concessions.

Account for Timeframes: Pay attention to dates and deadlines regarding contingencies, financing, and closing.

Earnest Money Instructions: Clearly outline vital factors related to earnest money, like the amount to be held, who will hold the funds, and what happens should the deal fall through.

Local Laws and Practices: Ensure the agreement complies with state and local real estate laws, as requirements can vary widely.

Review for Errors: Proofread for typos, incomplete sections, or incorrect information that could cause delays or disputes.

Consult When Unsure: If you’re unsure about specific terms or clauses, consult a broker or real estate attorney to avoid legal issues.

These points can save time and prevent potential complications in the transaction process.

5. How do earnest money deposits work?

An earnest money deposit (often called a “good-faith deposit) is made by a potential buyer to show serious intent to purchase a property. It is typically applied toward the purchase price at closing after being held in escrow.

If the buyer backs out for one of the reasons outlined in the purchase agreement, they may receive a refund. However, if they default, the seller may keep the deposit as compensation.

Related: What Is an Earnest Money Deposit?

6. What’s the best way to advertise a new property listing?

The best way to advertise a new listing is by leveraging a mix of digital marketing and traditional methods.

Start by creating a professional listing with a gallery of high-quality photos. These photos should highlight various parts of the property’s interior and exterior (e.g., kitchen, laundry room, backyard, drone photos, storage space, neighborhood, etc). The listing should also contain a video walkthrough and/or 3D tour, allowing viewers to feel like they’re touring the property in person from the comfort of their computer or mobile device.

An honest yet enticing description is also vital. Make sure to post this description on various listing platforms.

Once you’ve created the base for your listing, use social media ads, email marketing, and open houses to reach potential buyers. Consider running targeted ads on platforms like Facebook and Instagram to attract local interest.

Related: 5 Simple Strategies the Top Agents Are Bringing Into 2025

7. What is a seller’s disclosure?

A seller's disclosure is a document provided by the seller that outlines known issues or defects within the property being sold.

It typically includes information about structural problems, past repairs, environmental hazards, or anything that might impact the property’s value or safety. The purpose is to ensure transparency, protect the buyer, and minimize legal disputes after the sale.

Here are common items you’d typically find in a seller's disclosure:

Structural Issues: Information about foundation cracks, roof leaks, or termite damage.

Water Damage: History of flooding, plumbing leaks, or mold issues.

Electrical and Plumbing Systems: Problems with wiring, outlets, or outdated plumbing systems.

Appliances and Systems: Condition of major appliances, HVAC systems, water heaters, and fireplaces.

Environmental Hazards: Presence of asbestos, lead-based paint (for homes built before 1978), radon, or underground storage tanks.

Zoning or Legal Issues: Easements, boundary disputes, or non-permitted additions to the property.

Pest Infestations: History of infestations like termites, rodents, or bed bugs.

Neighborhood or Surrounding Issues: Noise problems, nearby environmental hazards, or nuisances.

Repairs and Upgrades: Information about recent repairs, remodels, or known issues that were not addressed.

Utilities and Systems: Sewer or septic system details, water source (e.g., well or municipal), and any issues with utilities.

8. What does the term “contingency” mean regarding real estate contracts?

In real estate, a “contingency” is a condition laid out in the contract that must be met for the agreement to proceed to closing. Common contingencies include financing approval, a satisfactory home inspection, or the property appraising at or above the purchase price. If a contingency isn't fulfilled, the buyer or seller may have the right to cancel the contract without penalties.

Common contingencies included in real estate contracts are:

Financing Contingency: Allows the buyer to cancel the contract if unable to obtain a loan with the agreed-upon terms.

Inspection Contingency: Gives the buyer a specified timeframe to inspect the property and identify necessary repairs. If the required repairs are not performed, the buyer can back out of the deal.

Appraisal Contingency: Ensures the property appraises for at least the purchase price, protecting the buyer from overpaying.

Home Sale Contingency: Allows the buyer to back out if they are unable to sell their current home within a certain timeframe.

Title Contingency: Requires the seller to provide clear title to the property, free of liens or disputes, before closing.

Insurance Contingency: Allows the buyer to confirm that homeowners' insurance is obtainable for the property at a reasonable cost.

HOA/Condo Association Review Contingency: Gives the buyer time to review the rules, regulations, and financials of an HOA or condo association before proceeding.

9. What should I include in a real estate listing description?

A great real estate listing description should highlight the property's key features and appeal to potential buyers. Here are some vital components:

Compelling Opening Statement: Grab attention with a unique selling point, such as “Move-in ready home with breathtaking mountain views!”

Basic Property Details: Include the number of bedrooms, bathrooms, square footage, and lot size.

Standout Features: Highlight upgrades, unique architectural details, and features like a gourmet kitchen, spacious backyard, or smart home technology.

Location Highlights: Mention proximity to schools, parks, shopping centers, or major highways.

Outdoor Features: Note features like a pool, deck, fenced-in yard, or landscaped garden.

Special Inclusions: Indicate if appliances, furniture, or other perks are included in the sale.

Call to Action: End with a phrase like “Schedule your showing today!” or “Don’t miss this opportunity!”

Important Note: When writing real estate listing descriptions, avoid using any language that could sound discriminatory and ensure your descriptions reflect the protections laid out by the Fair Housing Act (FHA).

10. What is the latest real estate news?

Housing Inventory Increase: Recent data indicates a slight increase in housing inventory.

Home Prices Are Decreasing Slightly: With inventory creeping up, home prices are seeing a slight decline. However, this can change at any point as we approach popular buying and selling seasons (spring and summer).

Mortgage Rates Are Rising Again: After staying below 7% (for a 30-year fixed mortgage) for much of 2024, we’re starting to see rates climb back up above 7%. Many experts predict that uncertainty due to a changing administration (among other factors) may cause mortgage rates to remain elevated for the near future.

Related: What Will Mortgage Rates Do in 2025? The Answer Is Complicated

These developments highlight the dynamic nature of the real estate market, emphasizing the importance for agents to stay informed and adapt to ongoing changes.

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As a real estate agent, staying informed and prepared is key to building a successful career and earning your client's trust. By addressing these common questions, you’ll sharpen your skills and set yourself apart as a knowledgeable and reliable professional.

Now, with AI-powered data (provided by PropStream Intelligence™), PropStream is your end-to-end solution for property research, lead generation, marketing, and more!