Frequently Asked
Questions

Pre-qualification is a quick estimate of how much you might be able to borrow based on information you provide — no credit check required. It gives you a general idea of your budget but carries little weight with sellers.

Pre-approval is a formal process where a lender verifies your income, assets, and credit. A pre-approval letter is much stronger — it shows sellers you are a serious, qualified buyer and gives you a competitive advantage when making offers. Melanie always recommends getting fully pre-approved before starting your home search.

From accepted offer to closing, the typical timeline is 30 to 60 days — depending on the loan type, lender processing times, and any issues that arise during inspections or appraisals.

The search process itself varies widely — some buyers find their home in days, others take months. Getting pre-approved before you start searching puts you in a position to act quickly when you find the right property.

Melanie strongly recommends a home inspection for every purchase — no exceptions. A licensed home inspector examines the structure, systems, and condition of the property and identifies issues that may not be visible to the untrained eye.

The cost is typically $400–$600 and is paid by the buyer at the time of inspection. The information you receive can save you from buying a property with serious problems — or give you leverage to negotiate repairs or a price reduction. Never waive your right to an inspection.

Closing costs are fees paid at settlement to complete the real estate transaction. They typically include lender fees, title insurance, transfer taxes, prepaid property taxes and insurance, and settlement fees.

Total closing costs are typically 2–5% of the purchase price. In most transactions, both buyers and sellers pay closing costs — though the specific amounts vary by state and are negotiable. Melanie routinely negotiates seller contributions toward buyer closing costs, which can significantly reduce the cash you need at settlement.

Earnest money is a good-faith deposit made by the buyer when submitting an offer — typically 1–3% of the purchase price. It shows the seller you are serious and is held in escrow until closing, where it is applied toward your down payment or closing costs.

If the sale falls through due to a contingency — such as a failed inspection or financing issue — you typically receive your earnest money back. If you back out without a valid contingency reason, you may forfeit the deposit. Melanie will explain exactly how earnest money works in your specific state and transaction.

The 30/30/3 rule is a widely referenced financial guideline for home buying — these are recommended guidelines only, not requirements, and there are many legitimate exceptions.

30% of monthly income — Keep total monthly housing costs at or below 30% of gross monthly income.

30% of savings — Have approximately 30% of the purchase price available in savings to cover down payment, closing costs, and reserves.

3x annual salary — Consider homes priced at no more than 3 times your annual gross income.

These guidelines help buyers evaluate affordability conservatively. However, VA and USDA zero-down loans, state assistance programs, dual incomes, and other factors mean many buyers successfully purchase homes that don't strictly follow these guidelines. Always consult with a qualified lender and financial advisor for your specific situation.

The most reliable way to determine your home's market value is through a Comparative Market Analysis (CMA) prepared by a licensed real estate agent. A CMA examines recent sales of similar properties in your area, current active listings you'll compete against, and market trend data to establish a realistic price range.

Online estimates from sites like Zillow or Redfin can be significantly inaccurate — sometimes by tens of thousands of dollars. Melanie provides free, no-obligation CMAs for homeowners across all four states. Contact her to schedule yours.

Days on market vary significantly by location, price point, condition, and market conditions. In active markets like Chester County PA or New Castle County DE, well-priced, well-prepared homes can receive offers within days. In slower markets, the process may take weeks or months.

Pricing is the single most important factor in how quickly your home sells. Homes priced correctly from the start consistently sell faster and for more money than homes that are overpriced and later reduced. Melanie's honest pricing guidance is one of her most valued services to sellers.

Seller assist — also called seller concessions — is when the seller agrees to pay a portion of the buyer's closing costs as part of the negotiated sale. This is very common and can be a powerful tool in negotiations.

For sellers, offering seller assist can attract more buyers without reducing your list price — maintaining the appearance of full-price value while effectively reducing the buyer's out-of-pocket costs. Melanie will advise you on the optimal seller assist strategy for your market conditions.

Not all repairs are equal — some add significant value while others return little on the investment. Melanie walks through every home before listing and provides specific, prioritized recommendations based on what buyers in your specific market respond to.

Generally speaking, deferred maintenance items — leaky faucets, broken fixtures, damaged trim — should always be addressed. Major cosmetic updates like fresh neutral paint and clean carpets typically deliver strong returns. Major renovations like kitchen and bathroom remodels may or may not make financial sense depending on your market and price point.

Yes. Melanie A. Costa holds active real estate licenses in Pennsylvania, Delaware, New Jersey, and Maryland — allowing her to legally represent buyers and sellers in all four states. Her Pennsylvania license number is AB066442.

This multi-state licensure is one of her most significant advantages for clients — particularly those relocating, comparing cross-border options, or managing transactions in multiple states simultaneously.

Buyer representation arrangements and compensation structures vary and have evolved in recent years following industry changes. Melanie will clearly explain her representation agreement and any compensation arrangements during your initial consultation — before you commit to anything.

Contact Melanie directly at (484) 437-5421 or [email protected] to discuss how buyer representation works in your specific state and situation.

Melanie is fluent in English, German, and Greek — making her an excellent resource for buyers and sellers from diverse linguistic and cultural backgrounds across the four-state region.

Yes. Melanie's 22+ years of experience includes significant commercial real estate transactions across all four states — retail, office, industrial, mixed-use, and land. She holds multiple professional designations related to commercial and investment real estate including CFIS (Certified Foreclosure & Investment Specialist) and CIPS (Certified International Property Specialist).

Simply contact Melanie directly — by phone, text, or email. There is no obligation and no pressure. Melanie's approach is to start with a conversation, understand your situation and goals, and then provide honest guidance on the best path forward.

Cell: (484) 437-5421
Office: (610) 622-7500
Email: [email protected]
Website: melaniecosta.net