Frequently Asked Questions

Thinking about buying or selling a home? This FAQ covers the most common real estate questions, including how to get pre-approved, the costs of buying a house, and the best time to sell your home. Whether you're a first-time buyer or an experienced seller, you'll find expert answers here.


General Real Estate Questions

1. Do I Need a Real Estate Agent to Buy or Sell a Home?

While it’s possible to buy or sell a home without an agent, working with a professional provides expertise, market knowledge, and negotiation skills that can save you time, money, and stress. A good agent ensures you get the best deal, navigate legal requirements, and avoid costly mistakes.


2. How Do Real Estate Agents Get Paid?

Real estate agents are typically paid a commission based on the final sale price of the home. In most cases, the seller covers both the listing and buyer’s agent’s commission from the sale proceeds. While buyers don’t pay their agent directly, the commission is built into the transaction, allowing them to benefit from professional representation without needing to pay their agent separately or come up with extra funds beyond their down-payment and closing costs.


3. How Long Does It Take to Buy or Sell a Home?

The timeline varies depending on market conditions and individual circumstances. On average:

  • Buying a home takes 30-60 days once you’ve made an offer, in most cases.
  • Selling a home typically takes a few weeks to a few months, depending on pricing, marketing, and demand.


4. What’s the Difference Between a Buyer’s Agent and a Seller’s Agent?

  • A buyer’s agent represents the homebuyer’s interests, helping them find properties, negotiate offers, and navigate inspections and closing.
  • A seller’s agent (or listing agent) works for the seller, marketing the property, negotiating with buyers, and ensuring a smooth transaction.

While these roles have different responsibilities, buyer’s agents and listing agents hold the same real estate license. In fact, most agents represent a mix of buyer’s and seller’s, though some choose to focus their business more heavily on one or the other.


5. What Is a Comparative Market Analysis (CMA) in Real Estate?

A Comparative Market Analysis (CMA) is a report prepared by a real estate agent to estimate a home's value based on recent sales of similar properties in the area. It helps sellers determine a competitive listing price and gives buyers insight into fair market value. A CMA also typically includes an estimate of how long the home should take to sell based on current market conditions.

A CMA is not an appraisal. An appraisal is conducted by a licensed appraiser and is typically required by lenders to assess a home’s value for financing purposes. While both provide a value estimate, a CMA is meant to guide pricing strategies, while an appraisal is a formal valuation used in mortgage approvals and other legal or financial decisions.


FAQ For Buyers

6. How Much Money Do I Need for a Down Payment to Buy a Home?

The minimum down payment depends on whether the mortgage is insured or conventional:

  • For insured mortgages(CMHC-backed):
    • 5% down for homes up to $1.5 million
    • Homes over $1.5 million are not eligible for mortgage insurance
  • For conventional mortgages(not insured):
    • 20% minimum down payment regardless of the home price

Buyers using an insured mortgage must pay mortgage insurance premiums, which are added to the loan amount. Conventional mortgages do not require insurance but require a larger upfront investment.


7. What’s the Difference Between a Conventional vs. Insured Mortgage?

A conventional mortgage requires a minimum 20% down payment and does not require mortgage insurance. This option is ideal for buyers who want to avoid additional insurance costs and have enough savings for a larger down payment.

An insured mortgage allows buyers to purchase a home with less than 20% down, but it requires mortgage loan insurance (such as CMHC, Sagen, or Canada Guaranty), which protects the lender in case of default. The insurance premium is added to the mortgage amount and repaid over time by the borrower as part of their mortgage payments.

Insured mortgages are typically used by first-time buyers or those with a smaller down payment, while conventional mortgages offer long-term cost savings by avoiding insurance premiums.


8. Should I Get Pre-Approved for a Mortgage Before Looking at Homes?

Yes! A mortgage pre-approval helps determine your budget, strengthens your offer, and speeds up the buying process. Sellers also take pre-approved buyers more seriously, especially in competitive markets as it shows you’re financially ready to purchase.

A pre-approval also helps identify potential financing issues early, giving you time to resolve them before making an offer. Pre-approvals are typically valid for 90 to 120 days, and provide interest rate protection—if rates go up, you keep your pre-approved rate, but if they go down, you can still secure the lower rate. Keep in mind that pre-approval does not lock you into a specific lender until you finalize your mortgage.


9. What Extra Costs Should I Expect When Buying a Home?

In addition to the down payment, buyers should budget for other upfront and ongoing costs, including:

  • Home inspection fees – Around $600 for a typical single-family home.
  • Legal fees (purchase & mortgage registration) – Typically $1,500 to $2,500, depending on the purchase price and transaction complexity.
  • Moving expenses – Varies based on distance and amount of belongings, but expect around $2,000 for a 3-4 bedroom home.
  • Property taxes – If already paid by the seller for the year, you’ll reimburse them for your portion. Costs depend on location; in Edmonton, property tax is currently $1,017.38 per $100,000 of assessed value.
  • Home insurance – Based on property value and location, but expect $1,700 – $2,400 for an average home.

Some additional costs may apply depending on the property, such as condo fees, utility hookups, and potential repairs or renovations. Having a financial cushion for these expenses ensures a smoother homebuying process.


10. Do I Need a Home Inspection Before Buying a House?

A home inspection is a professional evaluation of a property's condition, including its structure, roof, electrical, plumbing, HVAC, and more. While not mandatory, it is highly recommended to identify potential issues before finalizing your purchase. A thorough inspection can help you avoid costly surprises, negotiate repairs with the seller, or even reconsider the purchase if major concerns arise.


11. What Happens After My Offer Is Accepted?

Once your offer is accepted, several steps take place before closing:

  • Home inspection & financing approval – Ensure the property meets your expectations and that your lender approves the mortgage.
  • Fulfilling conditions – Satisfy any other conditions in the offer, such as an appraisal, condo document review, or additional inspections.
  • Finalizing mortgage details – Work with your lender to complete all necessary paperwork and secure financing.
  • Legal paperwork & closing preparations – Your lawyer will handle title transfer, closing costs, and final documentation.
  • Possession day – Once everything is finalized, you get the keys and officially take ownership of your new home!


FAQ For Sellers

12. How Do I Determine the Best Asking Price for My Home?

The right asking price is based on comparable sales, current market conditions, and your home’s unique features. A real estate agent will conduct a Comparative Market Analysis (CMA) to assess recent sales of similar homes and recommend a competitive price that attracts buyers while maximizing your profit.

Pricing too high can deter buyers, while pricing too low may leave money on the table—a well-priced home generates strong interest and can lead to better offers.


13. What Should I Do to Prepare My Home for Sale?

To make the best impression and attract buyers, focus on these key steps:

  • Declutter and deep clean – A tidy, spotless home feels more inviting.
  • Make minor repairs – Fix paint touch-ups, leaky faucets, and other small issues.
  • Stage the home – Arrange furniture and decor to highlight key features and maximize space.
  • Enhance curb appeal – Tidy up landscaping, touch up the exterior, and ensure the entrance is welcoming.

A well-prepared home not only sells faster but can also increase buyer interest and improve offers.


14. How Long Will It Take to Sell My Home?

The time it takes to sell depends on market conditions, pricing, and the condition of your home. A well-priced and well-marketed home in a balanced market typically sells within a few weeks, while homes in slower markets or unique properties may take longer.

If a home sits on the market too long, it may indicate overpricing or the need for improvements—adjusting price, staging, or marketing strategy can help attract more buyers.


15. When Is the Best Time of Year to Sell My House?

Spring and early summer are typically the busiest seasons for real estate, as buyers are more active and families prefer to move before the new school year. However, homes sell year-round, and the best time to sell depends on market conditions, supply and demand, and your personal timeline.

In strong markets, homes sell quickly in any season, while in slower markets, strategic pricing and marketing can make a big difference.


16. Should I Be Home for Showings?

No, and in most cases, it’s actually better if you’re not. Buyers feel more comfortable asking questions, discussing the home openly, and imagining themselves living there when the seller isn’t present.

Your agent will handle all showings, answer buyer questions, and keep you updated on feedback and interest.


17. What Closing Costs Do Sellers Have to Pay?

Sellers should budget for a few key expenses at closing, including:

  • Real estate commission – Agreed upon in the listing contract and paid from the sale proceeds.
  • Legal fees – Covers title transfer, discharge of the mortgage, and closing paperwork.
  • Mortgage discharge fees (if applicable) – Includes any penalties for breaking a term early or administrative fees for payout.
  • Adjustments for property taxes & utilities – If pre-paid, the buyer will reimburse you for the portion after closing; if unpaid, you must settle them at closing.

Depending on the sale, other costs may apply, such as condo document fees or capital gains tax on investment properties. Your real estate agent and lawyer can provide a detailed estimate of your closing costs.