Questions Answered
Real Estate Questions, Answered by Alex Rivera
A regularly updated set of plain-English answers to the questions clients ask me most.
How long does closing usually take?
Most of my deals close in 30 to 35 days once we're under contract. Cash deals can close in as little as 10 days.
What is escrow?
Escrow is the neutral third party that holds the money and documents while we complete inspections, appraisal, and loan approval — nobody gets paid until every condition is met.
What is earnest money?
Earnest money is your good-faith deposit, usually 1-3% of the price. It counts toward your down payment at closing and is protected by your contingencies.
When should I offer above asking?
In this market it depends on the list-price strategy. I run the comps first — some homes are priced to spark bidding wars, others are priced at real value. We offer based on what it's worth, not the sticker.
Anything special for first-time buyers?
I love working with first-time buyers. We start with a 30-minute strategy call, get you pre-approved with a lender you trust, and I walk you through every form before you sign it.
How do showings work?
See something you like in the app? Tap Request a Tour and I'll confirm a time, usually within the hour. I preview homes for out-of-town clients over video too.
Who pays your commission?
My commission is always discussed upfront and put in writing before we work together — no surprises. On the buy side, much of it is typically covered through the transaction itself; I'll walk you through exactly how it works in our first call.
How do you handle multiple offers?
Multiple offers are won on terms as much as price: clean contingencies, the right timeline for the seller, and a personal touch. My offer packages are designed to stand out.
What do I do before making an offer?
Three things: comps from the last 90 days, a disclosure review, and a real conversation about your max number so we negotiate from strength, not emotion.
How long does it take to find the right home?
My average buyer finds their home in 6-8 weeks of active touring. Some fall in love on tour one, some take six months — there's no wrong pace.
Rent vs buy?
The honest answer: it depends on how long you'll stay. Five-plus years almost always favors buying here. I'll run your actual numbers, not a generic calculator.
Remote buying?
I do full video tours with a gimbal, narrate every flaw I see, and handle docs electronically. I've closed a dozen homes for buyers who saw them in person only at the final walk.
Response time?
Texts within the hour during the day, calls back same day, always. In escrow, you have my cell for evenings too.
Market outlook?
Inventory is still tight in the SGV, so well-priced homes move in under two weeks. Rates have cooled the frenzy — good news for buyers who are prepared.
Why choose you?
Ten years, 200+ closed transactions, and a construction background that saves my clients real money in inspections. But mostly: I answer my phone.
Bidding war tips?
Set your walk-away number before the war starts. Then we compete on certainty: strong pre-approval letter, tight timelines, and a personal letter where it's allowed.
Escalation clause?
An escalation clause automatically raises your offer up to a cap when competing bids come in. Powerful in the right situation, but I use it selectively — it shows your hand.
Best neighborhoods?
For value right now: Altadena for space, Eagle Rock for walkability, and the Washington Square pocket of Pasadena for craftsman charm that still appraises well.
Deal falls through?
It happens, and it's usually not fatal. If a deal dies in escrow, your contingencies protect your deposit and we regroup — often the second house is the better one.
Waiving inspection?
I almost never recommend waiving inspection. We can shorten it to 5-7 days to stay competitive without flying blind.
After close support?
Closing isn't goodbye. I send contractor referrals, remind you about your homestead exemption, and check in with a home-value report every year.
How you communicate?
However you prefer — text for quick stuff, calls for decisions, and a weekly summary so you always know where things stand.
Recommended lenders?
I work with three local lenders who close on time and answer their phones on weekends. I'll intro you to all three — the choice is always yours.
Walk away red flags?
Foundation movement, unpermitted additions the seller won't disclose, and flippers who won't provide receipts. I'll tell you to walk — I'd rather lose a deal than your trust.
Cash offer advantage?
Cash closes faster and removes appraisal risk, so sellers accept 2-4% less for it on average. If you're financing against cash, we compete with speed and certainty.
Down payment minimum?
You don't need 20%. FHA starts at 3.5%, conventional at 3-5%. Twenty percent avoids mortgage insurance, but waiting years to save it often costs more than PMI.
How competitive offer?
Comps decide the number; terms decide the winner. Shorter contingency windows, a bigger earnest deposit, and a flexible close date routinely beat higher offers.
When to start looking?
Talk to me 3-6 months out. We'll fix credit dings, get you pre-approved, and start touring casually so you know the market before you need to win in it.
Preapproval vs prequal?
Pre-qualification is a guess; pre-approval is underwritten proof. Sellers only take pre-approval seriously, and it's free.
School district advice?
I'll pull SchoolDigger ratings and boundary maps for every home we tour — boundaries shift, and the "district" in a listing isn't always the school you'd actually get.
Whats in closing costs?
Plan on roughly 2-3% of the purchase price: escrow and title fees, lender fees, prepaid taxes and insurance, and recording fees. I send a line-item estimate before you commit.
Contingencies explained?
Contingencies are your exit ramps — inspection, appraisal, and loan. They let you back out with your deposit if something material goes wrong.
Inspection vs appraisal?
The inspection protects you from the house (condition); the appraisal protects the lender from the price (value). You want both.
What is title insurance?
It protects your ownership against claims from the past — liens, forged deeds, unknown heirs. One-time fee at closing, protection forever.
How to pick neighborhood?
Drive it at 8am and 8pm, walk to coffee, check the school ratings even if you don't have kids (resale), and I'll pull crime and permit data for you.
Alex Rivera Licensed California real estate agent · DRE #DEMO-REVIEW-0001 · Newmarket Edge (Demo) Pasadena · Altadena · Glendale · Studio City · Sherman Oaks
