Closing costs are extra expenses that need to be paid when buying a home. Here are some typical closing costs for home buyers:
- How much money should a buy have saved up to purchase a home?
- There are down payment assistance programs where a buyer can get a grant for their down payment and purchase with only $1000 out of pocket. However, they will still need about $300 for an inspection.
- For most buyers they will need the following:
- Earnest Money Deposit – Typically 1% of the Purchase price but it is Negotiable.
- Money for an Inspection – Typically $300, sometimes $500 if they have to check out a well or sewer scope.
- Down Payment – could be anywhere from ZERO to 20% down
- Loan Closing Costs – Those run about 1-2% of the Loan amount
- These can be negotiated as a part of the loan as a seller expense
- Eg raise the price and have “seller” pay it, but really it’s the buyer in the form of a price higher than asking price.
- Moving Expenses
What are some examples where a buyer can get their funds from other sources?
- #3 Things – FIND THEM THE HOME!
- It’s the Agents Job to FIND THEM THE HOME
- Most agents set up a search and tell them to call if something is of interest
- That’s the Lazy way.
Once a buyer finds a home – how can the agent help the buyer
- #4 Thing: COMMUNICATION!!! Manage the project!
- Things like, schedule loan app, schedule the inspection, ATTEND THE INSPECTION, keep buyer informed about the appraisal, schedule the walkthrough (most agents wait until the last minute to do this stuff)
- So many agents seem to do things…on the fly, with no advance planning, that is why I often get panicky texts and calls AFTER BUSINESS HOURS. Unless the house is on fire, there is no real estate emergency! It seems like they must have other full-time jobs because many of them do not seem to manage the tasks during business hours!
- We have a transaction coordinator in our office, Wendy Escobar, that does just that for them. But she works during business hours!
What does an agent do with regard to NEGOTIATIONS?
- You are an attorney so I know you understand the meaning of Fiduciary. It means put the needs of their clients ahead of their own.
- #5 Thing NEGOTIATE FOR THE BUYER:
- Negotiations are done by agents for…
- Initial contract negotiations
- Inspection items
- Appraisal objections (if any)
- But many agents take this word ‘fiduciary” WAY TOO FAR, so much so they try to derail the contract at every step of the way, without regard to whether the buyer wants it or not.
- Many of them seems to thrive on creating drama when its not necessary…all in the name of ‘FIDUCIARY’. I think they think it means…”I’m going to protect my buyer from getting the house!”
- -HWY 24 Story
- On occasion some agents vanish until its time to collect their check at the closing table. This happens most often when they “sell” new construction.. Explain.
- On our team we make sure we first consult with our buyers and what THEY want with regard to negotiations. We are not trying to TALK THEM OUT OF BUYING THE HOUSE.
- With new construction, we attend the difference phases and meetings the builders set up. This is one of the largest investments in their lives and we are getting paid to help them make this investment. Its important to our team to support our clients and their needs in every way.
- What are some things you find that help buyers through the process?
- Keep in mind that people are going through a tremendous amount of stress and try to make the process as well planned out and smooth. Eg:
-Help coordinate getting their funds the right way at closing. (who is the check made out to)
-Communicating the purpose of the walk through.
IT IS NOT A RE-INSPECTION DEFINE
Should any Inclusion or service (including utilities and communication services), system, component or fixture of the Property (collectively Service) (e.g., heating or plumbing), fail or be damaged between the date of this Contract and Closing or possession, whichever is earlier, then Seller is liable for the repair or replacement
Walk Through: Buyer, upon reasonable notice, has the right to walk through the Property prior to Closing to verify that the physical condition of the Property and Inclusions complies with this Contract.
- Give Buyer Information about Transferring Utilities
- Most of all, make the closing a happy occasion – NO DRAMA!!!