"How much money does it take to buy a home these days"should be the question..
No doubt the home-buying process has been thrown upside down in this fast-paced seller's market. Instead of a buyer striving to get the most amount off of a sales price, and sometimes getting their closing costs paid by the sellers, buyers are now faced with the competition of how to prove themselves to be the most qualified candidate to the sellers (sometimes among many, but usually several)...to buy their home. A buyer may state that they will not allow the market to influence their home-offer...but that buyer soon finds that after losing 3-4 offers, they are the one left without a home.
So, what amount "does" one need before entering the home-buying rat-race of North Texas in 2015?
Earnest Money-This was typically 1% of the sales price of the home. Now, buyers are putting down 5-10% of the sales price in earnest money deposits (and in some cases, more!) to prove their commitment to follow through on the home sale.
Option Fee -This was typically $100.00 for the standard 10-day option. It's now not uncommon to see $500.00 or more for the option fee and a 3-5 day option period.
Inspection Fee - This depends upon the square footage of the home, but the average home-inspection for a 2700 sf home is generally around $350.00.
Structural Engineer- We live in Texas. Be prepared to see hairline cracks, mortar cracks and more. You'll want to have the foundation evaluated by a structural engineer if so, to confirm the integrity of the structure. Expect an average cost of $350.00.
Appraisal Fee -$350.00-375.00 in most cases.
Survey - Did you agree to pay for this or did the seller? That's another cost to account for.
Escrow and Insurance - Your lender may require several months of insurance and/or escrow to fulfill the loan requirements.
Origination Fee - Want to buy down your interest-rate? This costs $ too.
Closing Costs - Generally 2-5%. We are in a market where almost no one is asking the seller to pay for their closing costs, ie: a seller-contribution. It happens, but it is very, very rare-especially in popular, sought-after locations.
Down Payment - Let's not forget this guy. More of a down-payment means more of a solid offer. While the minimum down-payment ranges from 3-20% (depending upon what loan-type you get and if you plan to owner-occupy the home), more is always better and shows the seller that you are a stronger candidate for the home.
We understand that for many people, buying or selling a home is probably the largest investment decision that they will make in their lifetime. Halo Group Realty LLC thus became active in selling Real Estate in 2008 and was setup to make this process a simple and painless transaction. Your dedicated agent will guide you every step of the way to make purchasing or selling your home enjoyable and exciting… as it should be!
Today, Halo Group Realty LLC is at the cutting edge of technology in offering assistance to those in need of real estate services, and we have revolutionized the method of delivering education to consumers. Halo is established as the place for consumers to get the knowledge and assistance they deserve in the process of facilitating the Real Estate transaction, positioning you in the best possible situation to get the best price when you either to buy or sell. With leadership, innovation and forward thinking, Halo Group Realty, LLC is poised to make a huge impression in the real estate market while providing clients the keys to home ownership.
Our goal is to help make your dream a reality and take away all of the stress that goes along with purchasing or selling your home. Whether you are purchasing new construction, an existing home, or just an open space for future enjoyment, representation by a Halo agent is a valuable tool in making your dream become a reality.