Costs Associated With Buying a House - Appleton WI


Are you considering buying your first house? Sick of Renting? Just Married? Relocating with your family? These are all reasons why individuals are motivated to purchase a home in today's economy. However, very few Realtors go over the costs associated with buying a house. In this blog post I am going to go into detail on all of the costs you will encounter as a new home buyer.

1) Closing Costs
Some banks or mortgage lenders have a flat fee for what they charge when it comes to closing costs. I know a few banks in the community are somewhere around $650 to generate the loan. But in addition to the $625, you will have another 1% in title insurance costs you will need to pay. Along with setting money into an escrow account for taxes, insurance, & other misc items.

Roughly speaking closing costs amount to about 2-3% of your loan amount. Note: You can have the seller pay your closing costs!

2) Inspection - I always recommend people to get a home inspection & that will roughly cost $300-350 depending upon the size of the home. Obviously the larger the home the longer the inspection will take resulting in a higher cost inspection.

3) Realtor Fees - As a buyer, normally it is free for you to use a Realtor as the selling side of the transaction always pays the commission. However, if you have a buyer agency agreement you may be responsible for part of the compensation if the listing company will not compensate your full buyer agency percentage. This should be discussed at the time of signing a BA agreement!

4) Home Warranty - A home warranty is a $450 charge that is optional. It will cover the house for up to a year after purchase incase anything were to go wrong with the mechanicals. The HW company will come out & either repair or replace the mechanical item u to a certain dollar amount.

These are the general costs you will face when buying a house! Also, you will need to make a downpayment so don't forget to set money aside for that!

Thanks

Comments

Post a Comment

Popular posts from this blog

What Are Closing Costs

Closing costs are on both the buying and selling side of a transaction. If you are looking to learn more about what exactly they all entail, please keep reading as Carter goes over some of the most common closing costs that you face as a buyer or seller. Home Buyer Closing Costs Buyers face closing costs when they are either purchasing a home for cash or when they finance it through a mortgage lender. The main difference between the two is that the buyer will have significantly higher costs when going through a lender.  The main reason behind this is because there are more people that need to be paid. Instead of just paying for a title insurance policy, now you will need to pay for lender origination fee, discount points, appraisal fee, recording fee, and several other minimal fees.  The main cost is the lender fee which depends on if you go through a mortgage broker or normal bank. In my experience, local banks have significantly cheaper closing costs.  ...
Read more

When Should I Fire My Realtor

Image
Do you currently have a Realtor who is doing a bad job? Their communication is terrible, they made mistakes on the contracts, & they aren't selling your house. What other options do you have as a property owner? In the state of Wisconsin listing contract it states that the listing agreement can only be terminated with mutual consent from both parties. Meaning the Realtor (brokerage) has to sign off on cancellation & so do you the owner. If you are dealing with a tough or old school brokerage this might not be as easy as it sounds. However, if you are dealing with a Century 21 Affiliated brokerage they do have a "Seller Service Pledge" certificate that states if the agent isn't doing their job you do have the right to terminate the contract. Of course every scenario & situation is different. I would recommend you look at it from the agent's point of view. Do you have the property priced effectively or is it far too high? If the price is too hig...
Read more

Selling a Oshkosh House Without a Realtor

Image
Are you potentially thinking about selling a property that you own? Does the thought of having to talk with multiple Realtors, having dozens of people walk through your house, & then paying thousands of dollars in commissions make you upset? Well we have an easier way! Here at CB Home Solutions we buy properties directly from the owners saving you thousands in commissions & fees, & also allowing us to get a better deal on the property. It truly is a win-win type of scenario. Another benefit is the fact that you won’t need to make a single repair to the property. We buy houses in the as-is condition & we will clean out anything you decide to leave behind. Well… whats the catch? Like I had said previously, we like to get a good deal on properties. We do not pay retail value for homes as we need to make enough profit to stay in business. With that said, we may be able to pay you more then you think! If I had to describe our business, it is realistically like a P...
Read more