First Time Homebuyer Questions Answered

Introduction

Buying your first home can feel overwhelming. From understanding how real estate technology works to figuring out what you'll actually pay for services, first-time buyers often have dozens of questions before they're ready to commit to an agent.

Recently, I sat down with a couple looking to purchase their first home in the Canton/Norwood/Dedham area of Massachusetts. As an attorney and engineer respectively, they came prepared with thoughtful questions about the home buying process. Here are the most important questions they asked—and the answers every first-time buyer should know.

How Does the Compass Home Search Technology Actually Work?

The Question: "Will you send us emails of homes, or should we be actively looking?"

One of the biggest advantages of working with a tech-forward brokerage is the seamless integration of property search tools. Here's what you can expect:

• Automatic notifications: You'll receive instant emails the moment a property hits the market that matches your criteria

• Mobile and desktop access: Download the app or access via your computer to search anytime

• Interactive collections: Instead of outdated MLS email chains, you get a dynamic collection where you can comment, favorite properties, and communicate directly with your agent

• Off-market access: Some properties are listed privately before hitting MLS, giving you first crack at homes other buyers haven't seen yet

The system is designed to save you time. Rather than scrolling through multiple websites (Zillow, Realtor, Homes.com), you have one centralized platform with real-time updates.

How Much Will I Need Beyond My Down Payment?

The Question: "How much should we save up for?"

This is one of the smartest questions first-time buyers ask. Here's the reality:

Even if you're buying a "move-in ready" home, you should plan for unexpected expenses:

• Emergency fund: Maintain a nest egg for surprises (water heater failure, roof maintenance, etc.)

• Cosmetic updates: Even renovated homes may have areas that need updating. For example, a home might have a gorgeous renovated second-floor bathroom but a dated powder room on the main floor

• Budget flexibility: Bathroom renovations can range from $15,000 to $35,000+ depending on your choices and finishes

The key takeaway: Don't drain your savings for the down payment. You'll want a financial cushion for homeownership costs.

How Do Real Estate Agents Get Paid?

The Question: "How do you get paid?"

This is crucial to understand, especially after recent industry changes:

Understanding agent compensation helps you budget appropriately and know what to expect:

• Clearly outlined upfront: The compensation structure is detailed in your exclusive buyer representation agreement before you commit

• Multiple payment scenarios: Compensation may be offered by the listing broker/seller, or it may be your responsibility as the buyer

• Transparency is key: Your agent should explain all potential scenarios and how compensation will be handled in different situations

• Negotiable terms: Like any professional service, compensation terms can be discussed based on your specific situation and market conditions

The important thing is having a clear conversation about compensation before signing any agreements, so there are no surprises down the road.

What's the Typical Timeline from Search to Close?

The Question: "What is the timeframe? How long does it typically take?"

Understanding the timeline helps you plan:

• 30-45 days from offer to close: Once you find a property, make an offer, and get through the home inspection

• Search phase varies: Finding the right property is the most unpredictable part—it could take weeks or months

• Fast-moving process: Once you're under contract, things move quickly through inspection, negotiation, purchase and sale, and closing

The most time-consuming part is often the initial search. That's why having experienced agents who can pre-screen properties and provide insider knowledge about neighborhoods and pricing is so valuable.

What If I'm Not Satisfied with My Agent?

The Question (implied): Understanding the commitment when signing a buyer's agreement

This is an important consideration before entering into any professional relationship:

• Agreement terms vary: Buyer agreements can range in length and terms—read yours carefully before signing

• Termination provisions: Most agreements include provisions for how either party can end the relationship

• Protection clauses: Agreements typically include clauses protecting the agent's commission if you purchase a property they introduced you to, even after the agreement ends

• Communication is key: If issues arise, having an honest conversation with your agent is the first step

• Good agents want willing clients: Quality agents want to work with people who want to work with them—it's a partnership, not a trap

The bottom line: Before signing, make sure you understand the terms of the agreement, including how and when it can be modified or terminated. Don't be afraid to ask questions or negotiate terms that work for both parties.

What's the Difference Between Designated Agency and Dual Agency?

The Question: "Knowing that the property is within the company, both selling and buying, how much room for negotiation is there?"

This is a sophisticated question that shows you're thinking critically:

Designated Agency (what most brokerages use):

• One agent represents the seller, a different agent represents the buyer

• Even under the same brokerage umbrella, there's a "firewall" between the two agents

• Each agent has fiduciary duty to their own client

• Negotiation works the same as if agents were from different companies

Dual Agency (to be avoided):

• One agent represents both buyer and seller

• Creates impossible conflict of interest

• How can an agent's fiduciary duty be to both parties?

Most reputable agents avoid dual agency except in specific circumstances like new construction where there's minimal negotiation.

What About Your Agent's Experience Level?

The Question: "How many homes have you closed in the last 12 months?"

This is absolutely the right question to ask. Here's what matters:

Look for:

• Team structure: Experienced lead agents paired with newer agents can provide best of both worlds

• Transaction volume: Ask about both individual and team closings

• Specialization experience: Someone with investment property experience may understand home values and renovation costs differently

• Years in the market: Understanding local market cycles and neighborhood trends

Red flags:

• Agents who can't clearly articulate their experience

• Solo agents with no backup or team support

• Anyone who seems offended by the question

Don't be shy about asking for specific numbers and references.

Who Pays for Inspections and Other Services?

The Question: "Is there a set fee that covers all required things in the process?"

Important clarification for budgeting:

What you'll pay for:

• Home inspection: $650-$850 depending on property size

• Attorney fees: For purchase and sale review and closing

• Appraisal: Usually required by your lender

• Title insurance and other closing costs

What your agent provides:

• Recommendations for trusted inspectors (with photo-documented reports)

• Attorney referrals

• Coordination of all services

• Guidance through each step

Your agent coordinates the team but doesn't charge separately for these professional services—you pay those providers directly.

What Should I Know About Lenders?

The Question: "We're pre-approved with Chase, is that okay?"

This deserves its own consideration:

Not all pre-approvals are equal:

• Large banks (Chase, Bank of America, Citizens) historically have difficulty closing on time

• Local lenders often provide better service and responsiveness

• All lenders have access to similar rates—it's about service and reliability

• You want a lender who answers calls at 6 PM or on Sundays when you need to move fast

Questions to ask lenders:

• How quickly can you update my pre-approval letter?

• Will you be available outside business hours?

• What's your typical timeline to close?

• Can my agent contact you directly when we're writing an offer?

In competitive markets, having a responsive, reliable lender can make the difference in getting your offer accepted.

What About Market Conditions in My Target Area?

The Question: "What is the average home price in Canton for a decent home that doesn't need work?"

Market knowledge is crucial:

For Canton specifically (as of early 2025):

• Median sale price: approximately $802,000

• $800,000-$900,000 budget: Expect 3 bed, 2.5 bath with some updates

• Move-in ready under $1M: Mostly turnkey but expect minor cosmetic work

Expanding your search:

• Consider adjacent towns (Norwood, Dedham, Walpole)

• Different home styles (split-levels often have open concept layouts)

• Properties priced slightly higher with room to negotiate

• New construction townhouses as alternatives

Your agent should know these market nuances without having to research them.

Will I See Properties Before They Hit Major Listing Sites?

The Question: "The house would not necessarily be on Redfin. It would just be on Compass?"

Understanding off-market access:

How it works:

• Some properties are listed privately first to test the market

• These "private exclusives" give you early access

• If the seller gets the right offer, the property never goes to MLS

• Everything on MLS also appears on the brokerage platform

Example scenario: A Canton property might be listed privately at $850k with a new roof and heating system. Only buyers working with agents at that brokerage would know about it. If someone makes an acceptable offer during this private period, it never becomes public.

This early access can be significant in competitive markets with limited inventory.

Bottom Line: What Makes a Good Buyer's Agent?

Based on this consultation, here's what first-time buyers should prioritize:

1. Technology that actually helps - Not just MLS emails, but interactive tools that save you time

2. Team approach - Access to multiple experienced professionals, not just one solo agent

3. Market expertise - Agents who know neighborhoods, pricing trends, and can advise on value

4. Transparency about process - Willing to explain the buyer agreement, timeline, and costs upfront

5. Professional network - Established relationships with lenders, inspectors, and attorneys

6. Flexibility and understanding - Recognizing you may interview multiple agents (and being confident enough not to be threatened by it)

Next Steps for First-Time Buyers

If you're starting your home search:

1. Get properly pre-approved (and consider interviewing multiple lenders)

2. Define your must-haves (bedrooms, bathrooms, office space, etc.)

3. Set realistic budget expectations (including post-purchase reserves)

4. Interview multiple agents (and don't be shy about asking tough questions)

5. Understand the buyer agreement before signing

6. Build your team (agent, lender, attorney, inspector)

7. Learn the offer process before you find your dream home

The more informed you are upfront, the smoother and more enjoyable your home buying experience will be.

Have questions about the home buying process? Whether you're looking in Canton, Norwood, Dedham, or surrounding areas, understanding what to expect—and what to ask—can make all the difference in finding your first home.