The Questions I Get Asked the Most (Buying and Selling in Ames)

After 10+ years doing this in Ames and Story County, a handful of questions come up in almost every conversation — whether it’s someone’s first house or their fifth. Here are the honest answers.

“How much do I actually need for a down payment?”
Less than most people think. Conventional loans can go as low as 3-5% down depending on the program, and there are first-time buyer and rural (USDA) programs that can lower that further depending on where the property sits. The bigger number to know early is what you’re comfortable with monthly, not just the down payment.

“What’s earnest money, and do I get it back?”
Earnest money is a good-faith deposit that shows a seller you’re serious once your offer is accepted — it gets credited toward your purchase at closing. If the deal falls through for a reason your contract protects (financing, inspection, etc.), you generally get it back. If you walk away outside those protections, you can lose it, which is why the contract terms matter.

“Do I need a pre-approval before we start looking?”
Yes, and earlier than most people think. In a market where good listings can get offers fast, a pre-approval isn’t just paperwork — it’s what makes your offer competitive at all. I’d rather have that conversation with you before we tour a single house.

“What’s the difference between an inspection and an appraisal?”
An inspection is for you — it tells you the actual condition of the house so you know what you’re buying. An appraisal is for your lender — it confirms the home is worth what you’re paying, for their sake, not necessarily yours. Both matter, but they answer different questions.

“How long does closing actually take?”
Once you’re under contract, 30-45 days is typical, depending on financing and how the inspection process goes. Cash deals can move faster.

“Is now a good time to buy or sell?”
Honestly, it depends more on your situation than the market. I’ll always give you the real numbers for Ames and Story County rather than a generic answer — reach out and we can talk through your specific timeline.

Got a question I didn’t cover here? Send it my way — I’ll probably end up adding it to this list.

— Matt