FAQ

Choose from the list below for answers to questions that home buyers and sellers frequently ask when they begin the process.

Buyer Questions

Seller Questions

Buyer Answers

How much does it cost to work with a realtor?
As a buyer, working with a realtor costs you nothing. The broker
listing the property pays a portion of their commission, called a
cooperating commission, to the agent who brings in the home’s ultimate
buyer.

Where can I find listings of homes for sale?
Licensed agents use a computer system called the Multiple Listing
Service to search property listings, but this is by no means the only
place to find home advertisements. Both the Sun-Times and the Tribune
publish weekly listings of homes for sale in their print editions and
offer comprehensive search tools on the web. Coldwell Banker and the
National Association of Realtors also list properties nationwide on the
internet. Visit our Property Listings Web Links section for more
details.

How much can I afford?
As a rule of thumb, the cost of buying and maintaining a home,
including the mortgage payment, property taxes, and insurance, should
not exceed 28% of your gross monthly income. Also, this cost plus other
long terms debt like car or school loans, should not exceed 36% of your
income. Using these figures, you can compute an affordable monthly
payment and work backwards to find the right price range. There are
many loan calculators on the web, including this one from Coldwell
Banker Mortgage.

Before you start shopping for homes, you should meet with a lender to
figure out how much you can afford and get pre-qualified for that loan
amount.

How can I go see the homes I want?
We will work with you to find properties that interest you, then set up
the appointments and preview each home together. By visiting the
properties with you, we can get a better idea of what features you like
and further refine your search. You are also encouraged to visit open
houses on your own if your schedule allows, but we always want to hear
your feedback so as to better understand your needs.

What happens when I find the place I want?
You should act as quickly as possible to make sure you get it. Things
happen fast in the Chicago market, and if you like a home chances are
someone else does too. When you find your dream home, we will help you
determine the right price and submit an offer to the listing agent.

How do I negotiate the price?
When you decide to submit an offer on a home, we will help you to
determine the right price. It should be based on the sales history of
similar homes in the area, the unique qualities of the home in
question, and most importantly, how much it is worth to you.

In Chicago, houses are usually priced well, meaning they sell for
within a few percentage points of the original asking price. Your
initial offer indicates how well you feel the home is priced, and the
seller will respond accordingly. If you are serious about getting the
house, you shouldn’t submit an offer too far below the asking price,
but if you feel it is grossly overpriced you shouldn’t offer too much
money either. We will use our knowledge of the market to help you gauge
the right starting point.

After the initial offer, the seller may respond with a counter offer,
which you in turn can accept or counter again. We will communicate your
responses to each counter offer to the listing agent. This process may
be over quickly or it may last for a few days.

What happens at the inspection?
After you sign a contract to purchase a home, you will hire a licensed
home inspector to evaluate its condition. The inspector will look at
the appliances, check the plumbing and electrical systems, test the
heating, ventilation, and air conditioning units, and judge the
property’s general state of repair. He will complete a formal report
indicating any problems and potential issues.

What if the inspection uncovers a problem?
Your attorney and the seller’s attorney will negotiate a resolution to
problems found during the inspection. You can request that the seller
repair something before closing, or ask for a monetary credit so you
can fix the problem yourself.

What happens at the closing?
The closing will take place at the title company chosen by the seller.
We will accompany you to the closing, along with your attorney and
possibly your mortgage broker or loan officer. The seller’s attorney
and a title agent will also be there, but the seller often does not
attend. During the closing, the attorneys will review all the final
documents and negotiate any final terms. Get your writing hand ready,
because you will be signing dozens of documents.

Any final down payments or earnest money will change hands at the
closing, and you will also pay the closing costs. Your attorney will be
able to tell you approximately how much money you need to bring to the
closing as a certified cashier’s check. Because of the complexity of
calculating the various closing costs, this amount will be a
conservative estimate and not the exact amount. The remainder will be
refunded to you later.

Once all the documents are signed and final payments are exchanged, you
will receive the keys to your new home. Congratulations!

How much are closing costs?
When you apply for a loan, your mortgage broker or loan officer should
give you what’s called a “good faith estimate” of closing costs that
will approximate the actual amounts. Typically, the final costs are
within a few hundred dollars of this estimate. Altogether, this amount
can be anywhere from $2,000 to $5,000.

In the city of Chicago, closing costs typically include:

  • City Transfer Stamps ($7.50 per $1000 of the purchase price)
  • Appraisal fees ($225-$250)
  • Credit report charges ($25-$40)
  • Loan underwriting fees ($300-$400)
  • Title settlement or closing fees ($150-$225)
  • Title insurance (varies, $200-$500)
  • Mortgage insurance (if you pay less than 20% down, amount varies)
  • Attorney fees ($300-$500)
  • Prorated property taxes (varies with closing date and property value)
  • Prorated mortgage interest (varies with closing date and loan amount)

Seller Answers

How much does it cost to have a realtor list my home?
Traditional brokers charge a percentage of the final sales price as
their commission. Chicago realtors compete fiercely for listings. Some
discount brokers charge a low percentage or even a flat fee, but in
turn they offer a lower level of service, less marketing, and less
attention to detail. Often, such a discount broker may only post your
home in the Multiple Listing Service and do nothing else. You have to
schedule showings, hold open houses, and pay for any additional
advertising yourself. As agents working with Coldwell Banker, we
provide all these services and more for you. We earn our commission
with experience, professionalism, and the backing of Chicago’s premier
full service brokerage.

How long will my home be on the market?
In Chicago, properties stay on the market an average of 30-60 days.
This can vary greatly, however, depending on the unique properties and
context of the property. An extensively upgraded unit in a large
development may sell within the first week after listing, while other
units with only standard features stay on the market for months. The
most activity happens within the first two weeks after listing a
property because buyers and their agents typically monitor the newest
listings for the best deals.

How do I determine the right asking price?
We help you determine the asking price by performing a comparative
market analysis (CMA), a process by which we evaluate the sales history
similar homes in your area over the past six months. We consider unique
features of your home plus the cost of upgrades and renovations to set
its price relative to your neighborhood’s data.

The right asking price is your home’s fair market value. You want to
price it with the market so you can attract attention from the right
buyers and their agents. If you price it too high, you will discourage
potential buyers and your home will stay on the market longer, making
it appear less desirable. Of course, if you price it too low, you will
not get the most out of your investment. The ideal price is just low
enough to generate interest in the market as soon as it is listed,
while still maximizing your investment. This point is near the top of
comparable homes sold in your area, but near the bottom of other active
listings. Other agents and buyers recognize a value, and a home that is
priced well will attract attention quickly. The more enthusiastic
buyers that see your home as soon as it hits the market, the faster you
can sell it.

What should I do to prepare my home for showings?
You may have lived in your house for years and love the way it looks,
but unfortunately not everyone shares the same tastes. You need to
streamline and neutralize your home’s appearance so that it appeals to
the most potential buyers. It doesn’t seem fair that someone may judge
your home’s value based on how you furnished it, but buyers often
unconsciously do so. We will consult with you before showings to
prepare your home, but here are some quick tips:

  • De-clutter living areas and remove personal items like pictures,
    heirlooms, or antiques that may distract buyers from envisioning
    themselves living in the house.
  • Thin out large CD or movie collections and bookshelves so that they don’t overwhelm the rest of the room.
  • Re-paint rooms with neutral tones to cover any garish or unusual colors.
  • Repair minor problems like leaky faucets or creaky doors that you have learned to tolerate.
  • If possible, refurnish multipurpose rooms, like a second bedroom
    that has become your kids’ playroom or a dining room that also serves
    as an office, so that it has a clear purpose. A bedroom should look
    like a bedroom, a den should look like a den, etc.
  • And of course, always clean and straighten the house before showings.

How will you advertise my home?
Coldwell Banker boasts the most extensive marketing programs of any
broker in the Chicago area. In addition to listing your home in the
Multiple Listing Service so that other brokers can find it, we will
advertise your home on two separate Coldwell Banker websites,
ColdwellBanker.com and ColdwellBankerOnline.com, on Realtor.com, the
largest real estate site on the web, and in the print edition of the
Chicago Tribune. Your home will be featured during a weekly broker’s
tour, in which other Coldwell Banker agents visit the home, and we also
send marketing materials to other real estate agencies in the city.
With your permission, we can also hold open houses and place signs on
the premises.

Do I have to be at all the showings?
No. In fact, you don’t need to be at any showings. This is your time to
relax and let us meet with potential buyers. We will schedule all the
showings to work with your schedule, field the buyers’ questions, and
communicate the feedback to you.

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