Wednesday, March 7, 2018

What Costs Should Buyers Expect While Under Contract?

What expenses can homebuyers expect once they’re under contract? Let’s find out.

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What are your costs once you’re under contract? This is a common question, so I’ll be going over the answer, today.

First and foremost, you’ll have two checks to write when your offer is accepted. The first check will be the earnest money check, which is 1% of the sales price, and the second check will be your option check, which buys you an option period.

The option period can range from three to 10 days and the amount you’ll write the check for can range from $100 to $500.

Each of these checks will be dropped off with the title company within two days of going under contract.

After that, you’ll have another check to write. This time, it will be for the inspection. The price of an inspection ranges between $300 to $450 depending on the home’s age and location. Addition inspections, such as HVAC or termite inspections, will be an additional cost.

All of the costs you’ll have once under contract will vary depending on your specific circumstances.

The fourth check you’ll need to write is for the appraisal, which is done once the option period is up. The appraisal will range in cost from $475 to $650.

Once all of these early costs are taken care of, you’ll have some expenses related to getting your loan in order, such as lender fees, title fees, taxes, and insurance.

Like other costs, the price of homeowners insurance will vary depending on the age of your home. You should anticipate this expense to amount to anywhere from $75 to $150 per month.

Obviously, the expenses associated with your specific transaction will highly depend on your individual circumstances, but I hope this has given you a basic idea of what to expect.

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.