Google's Top Questions When Buying A Home
And an Insider's Knowledge of How They Relate to the NW Florida Market
If 20 people Googled “What are the top 10 Googled Real Estate Questions,” I’m sure the list will be about the same for everyone, except for maybe one or two questions. From there, AI will spit out a vague answer for you which may help, or may leave you with more questions, like how does that relate to the market you’re currently in. And is that AI generated also? How updated is that information? How hyper-local is that, so how accurate is it? Technology is great when it works, but can be super frustrating when it doesn’t, or isn’t accurate. Take Zillow’s Zestimates for example. It’ll give you an answer based on fairly recent and local information, but it can be off by as much as 20%! That doesn’t help anyone!
That’s why I Googled the “10 Most Googled Real Estate Questions” earlier. From there, I thought it would be fun to dive into some of those questions and let you know how they relate to our market, right now. (April, 2025 along The Emerald Coast of NW Florida). The local information will be italisized.
1. Understanding the Market:
What is a seller’s market vs. a buyer’s market?
This is regarding demand in the market. If it is considered a seller’s market, there is higher demand than there is supply, and if it is a buyer’s market, there is higher supply than there is demand. This is generally understood based off the absorbtion rate, or how quickly the current inventory will be purchased if no new inventory is added to the market. Less than 5 means a seller’s market, 6-7 means balanced, and 7+ means a buyer’s market.
Destin - 15.25
Niceville - 4
FWB - 6.25
Navarre - 5.17
Crestview - 5.65
What are the current real estate market trends?
Knowing this information, likely received from their Realtor, will help buyers and sellers set expectations on how to structure an offer, what can/should be negotiated, and possibly even repairs that need to be completed.
Sellers have comparable properties that are allowing them to price their homes toward the top of the market. However, with higher interest rates, higher insurance rates, and now buyers having to pay their Realtor out of pocket, the upfront costs for a buyer are higher than before. Because of that, as well as increasing days on market from higher inventory, many sellers are willing to negotiate. They are either giving a cash credit to the buyer at closing to help cover those up front expenses, doing price reductions, or a mixture of both. In addition, if roofs, water heaters, electrical, etc. are potential issues for insurance, these repairs are commonly completed prior to closing so a buyer can obtain favorable insurance as well. In a sense, sellers are willing to negotiate in order to entice a buyer.
Is now a good time to buy a house?
This depends on a variety of factors, including market conditions, interest rates, and personal financial situation, but I put the most emphasis on the latter. If you can comfortably buy a home, and you plan on staying in it for a while, then I feel it is a good time to buy a house. As I mentioned above, sellers are willing to negotiate and often give you thousands of dollars for closing costs which keeps cash in your pocket. It is unknown how long that trend will last, so you may want to take advantage of that! However, if you may be leaving in a year or two, and the house isn’t a slam dunk, or you don’t plan on coming back to it, then it may not be the best time. There’s never going to be a perfect time to buy a house. You just have to gauge your personal situation and get guidance from trusted sources.
2. The Home Buying Process:
How does the home buying process work?
Understanding the steps is essential and if you look at it as a whole picture, it seems daunting and confusing, kind of like the above type pictures were at the beginning. But then, you got super close, focused on one thing (maybe crossed your eyes a bit) and slowly pulled the picture away revealing an awesome 3D image. This probably isn’t the best analogy, but a real estate transaction is kind of like that! Start small and do one step at a time until the whole picture can be seen, or in real estate terms, the property closes! Here are my recommended steps:
Step 1 - Find a Realtor - either one you know, one that comes recommended, or one that you have found by searching online that you like and trust.
Step 2 - Meet with that Realtor for a consultation - this will allow you to get to know each other, learn about the market, explain what you’re looking for, etc. This is a very important step as you should both be interviewing each other! If you don’t get a good vibe, try someone else!
Step 3 - Get pre-approved with a lender - I put this as step 3 vs. step 2 because a Realtor will have reputable lenders that they know, like, and trust to help you get the deal done and to the closing table with fewer headaches, and that will likely save you a ton of money (vs. an online mortgage company). A good local lender could be the difference of a deal closing or falling apart, so go with someone with a good reputation.
Step 4 - Look for Houses!! - The most fun part, and what you’re probably looking forward to the most! Your Realtor will help with this!
Step 5 - Present and negotiate an offer - Your Realtor will help with this!
Step 6 - Home Inspection - Your Realtor can provide some reputable options and help request repairs, if necessary.
Step 7 - Paperwork to Lender and Appraisal - Your lender will give you a list of items they need for the loan. A lender with good communication is key to stay on track!
Step 8 - Resolve any issues discovered during the inspection, appraisal, title search, lending process, etc. - Your Realtor, title company, lender, etc. will help with this!
**If you didn’t happen to catch on, there is a professional by your side every step of the way! With a good Realtor, lender, and title company, the process can be relatively easy!
What if my offer is rejected?
If you submit an offer that was rejected by the seller strictly due to terms and not because they accepted another offer, then you can choose to walk away or try again. I’d hope your Realtor had already done this, but if they didn’t, have them reach out to the listing agent to get a better idea of what the seller is looking for in an offer. It may not always come down to what they’re netting. It could be a specific timeline they’re looking for, certain terms/verbiage they didn’t like, pricing, or a combination of all of them. Communication is key in real estate (as in life), so have the conversations and it is likely you’ll be able to come to a win-win solution!
3. Financing and Affordability:
What mortgage options are available and how do I choose which one to use?
The most common type of loans in our area are VA, FHA and Conventional Loans. After that, there are USDA loans, loans for doctors, and portfolio loans.
VA - Due to the proximity to multiple military bases, The Emerald Coast has a lot of veterans that are eligible for VA loans. This is a great loan option that allows for 0% down and slightly lower interest rates, but it does have the VA Funding Fee that can either be paid up front or rolled into the loan. **Key note: Most local lenders do not charge an origination fee (different than the funding fee), which can be a flat amount or a percentage of the loan. If you’re using an out of area lender or online lender, be sure to ask if there is an origination fee!
FHA - Helpful for buyers that do not qualify for VA and want to put less down. Minimum downpayment amount is 3.5% of the purchase price, but that is credit dependent. The maximum loan amount for Okaloosa County is $603,750, and this type of loan has mortgage insurance added into the payment for the life of the loan.
Conventional - Condisered a little more “lenient” in regard to appraisals, this loan option typically allows for as little as 5% down, but after 20% down, the mortgage insurance ($) portion of your monthly bill will fall off.
USDA - This is a 100% loan program (no downpayment required) for low to moderate income earners. Buyers must meet income eligibility requirements and the property must be in an eligibile rural area. Eligible locations
Doctoral and Portfolio Loans - Typically held in house by the bank that writes the loan and terms may be property/person specific.
What are closing costs and how much should I expect to pay?
When you get to start talking about offers and how much money you should expect to come up with for closing, you may hear the terms “closing costs” and “prepaid items.” They’re often lumped together, but typically closing costs are all the fees you should expect to pay both during escrow and at the closing table. This could include inspections, appraisals, lender fees, mortgage/loan fees, title fees, down payments, a survey, Realtor fees, etc. The “prepaid items” are fees that are required to be paid at closing, but that you are pre-paying before getting the item. This includes homeowner’s insurance, interest on the loan, and building up your escrow account. As a buyer, 5-6% of the purchase price, plus your downpayment amount, is a pretty safe estimate.
How much can I afford?
This is more of a lender question as they will compare your income per month to your expenses. There are certain debt-to-income limits depending on the loan and your creditworthiness. After a quick conversation with a lender, they should be able to give you a general price range that you should be looking in. If you have a monthly payment amount you want to stay in, they can use that to suggest a purchase price as well. My 2 cents though is that even though money can be difficult to talk about, you need to be open and honest with your lender, and your Realtor, about what you want to (or can) spend. They’ll be able to help you find a home and structure an offer that fits your budget. The earlier you talk budget, the faster the process will go because you won’t be looking at homes outside of your pricerange.
If you have any additional questions about buying a home, our current market, or anything else real estate related, please reach out! I am happy to meet for coffee or at my office to help you reach your real estate goals!
Jennifer Wilson | Realtor | 850.865.2788 | jenwilson2@outlook.com