Homebuyers generally pay minimal or no costs when using the services of an agent to purchase a property.

Here's why:

Typically, in a home purchase transaction, two real estate agents are involved: one for the seller and one for the buyer.

Listing agents work on behalf of the seller to list and promote the property, which can include a variety of advertising strategies such as radio segments, print materials, television, and online listings. They also list the property on the local Multiple Listing Service (MLS), making it accessible to a wide network of area agents, as well as national ones, who can then present the property to potential buyers.

Buyer's agents, who assist the homebuyers, are paid by the listing agent's brokerage who lists the property. Upon the sale of the home, the listing broker shares the commission with the buyer’s agent. Thus, unless the house is off-market or the seller discloses upfront that it will not pay a buyer's agent, it is typically not the buyers who are responsible for the payment of their agents' commissions (though sometimes there is a small brokerage or transaction fee paid at closing.)

The cost of hiring a real estate agent is typically covered by a commission, which is a percentage of the home’s sale price. This commission is negotiable. Always confirm the commission structure with your agent upfront, as terms can sometimes be negotiable or vary from one brokerage to another.

The first step of the home buying process is obtaining a mortgage pre-approval. This involves reaching out to a reputable lender to determine how much you can afford to borrow, which is based on an evaluation of your credit score, income, debts, and employment history, among other factors. A pre-approval letter is crucial as it gives you a clear idea of your budget, shows sellers that you are a serious and qualified buyer, and can give you a competitive edge in a busy market. It's important to do this before you start looking at homes, as it can save you time by focusing your search on properties within your budget, and can streamline the entire purchasing process.

To buy a house, the credit score you need can vary based on the lender and the type of mortgage you're applying for. Generally, a score of at least 620 is recommended for a conventional loan, while FHA loans may accept scores as low as 580 for the 3.5% down payment program, or even 500 with a 10% down payment. However, higher credit scores can secure more favorable mortgage rates and terms. It's wise to check your credit well in advance of house-hunting to allow time to address any issues and potentially improve your score, which could lead to better financing options and savings over the life of your loan.

The amount you need for a down payment on a house varies depending on the type of loan and your financial circumstances. Traditionally, lenders have looked for a 20% down payment, but there are many options available that require less. For instance, FHA loans can go as low as 3.5% for those with qualifying credit scores, and certain conventional loans offer down payment options as low as 3%. If you're a veteran or active military, VA loans may provide a no-down-payment option. It's also worth exploring local and state first-time homebuyer programs that often offer down payment assistance. While a smaller down payment can make homebuying more accessible, it's important to remember that putting down less than 20% often requires paying for private mortgage insurance (PMI), which adds to the monthly cost of your mortgage.

Deciding whether to sell your home before buying a new one is contingent upon your financial situation, market conditions, and personal preferences. Selling first can free up financial resources and give you a clear budget for your next purchase, potentially making you a more attractive buyer without a sale contingency. It can also save you from the financial strain of carrying two mortgages at once. However, it may necessitate temporary housing if there's a gap between the sale and the next home purchase.

On the flip side, buying before selling may be advantageous if you've found your dream home and the market is competitive, but it's riskier financially. It could require bridge loans or other financing solutions to manage both properties simultaneously.

Ultimately, this decision should be based on a careful assessment of your finances, risk tolerance, and housing needs, often with input from a financial advisor or real estate professional.

Preparing your house for sale involves several steps to ensure it appeals to potential buyers and garners the best possible price:

1. Declutter and Depersonalize: Remove personal items and excessive clutter. This helps buyers envision themselves in the space and makes rooms appear larger.

2. Deep Clean: A clean home is more inviting. Consider professional cleaning, including carpets and windows, to make the house shine.

3. Make Repairs: Fix any known issues that could deter buyers or decrease the value of your home, such as leaky faucets, peeling paint, or cracked tiles.

4. Update Where Necessary: Consider minor renovations that could increase home value, like updating fixtures or painting in neutral colors.

5. Curb Appeal: First impressions are crucial. Maintain the lawn, plant flowers, and ensure the entrance is welcoming.

6. Stage Your Home: Properly staging your home by arranging furniture and decor can maximize space and showcase your home's best features.

7. High-Quality Photos: Since most buyers start their search online, professional photos can make a significant impact on how your home is perceived.

8. Set the Right Price: Work with your real estate agent to price your home competitively based on market conditions and comparable sales in your area.

9. Prepare Documentation: Have all necessary documents on hand, such as warranty information, appliance manuals, and any recent home inspection reports.

By thoughtfully preparing your home for sale, you can help ensure a quicker transaction and a better selling price.