The Costs of Purchasing a Home

1st Expense: Earnest Money – $1500 or 1% of Sale Price

Earnest money is used to show the seller you are serious about purchasing their home. It is deposited upon acceptance of the purchase agreement and goes towards your down payment and closing costs. The earnest money is typically $1500 or 1% of the sale price.

2nd Expense: Inspection – Optional $500-$750

After acceptance of the purchase agreement, if you choose to have an inspection, you must have the inspection done within approximately 5 business days of acceptance of your purchase agreement. If you hire a licensed inspector, the inspector must be paid at the inspection and typically costs between

$500 -$750 depending on the inspector.  You may also have individual items inspected such as sewer lines or chimneys.

3rd Expense: Appraisal – Approximately $550

Your lender will order the appraisal within the first few weeks of acceptance of your purchase agreement. The appraisal ensures that the property meets the loan guidelines.

4th Expense: Homeowners Insurance – Between $900-$2000

Prior to closing, you must order your homeowners insurance. Insurance will vary depending on your insurance company, the age of the home you are purchasing, the distance to a fire department/fire hydrant, etc. Typically to get the best rate contact your car insurance agent, make sure to do this at least 2 weeks before closing.

At Closing: Down payment and Closing Costs

Unless you are a Veteran there are NO Zero down payment options. You CAN receive the down payment as a gift from a family member… the current minimum down payment programs are 3.5% down FHA and 3% down Conventional.

The Joyer Home Team Buyer Commission is 3% for traditional sales and 3.5% for foreclosure sales. The portion unpaid by the Seller’s Listing Company is the buyer’s responsibility. Keller Williams Premier Realty charges a Broker Retainer Fee of $495. Financing, title, and processing expenses are typically 3% of the sale price. These buyer closing costs can be negotiated to be paid for by the seller.