Buyer costs of purchasing a home

Buyer costs of purchasing a home
by Steve Meyers
July 25th, 2014

Many Buyers are unaware of many of the costs they will be obligated to pay prior to Closing on the purchase of a single-family home or condominium. These are called “Closing Costs” or “Settlement Costs”. It’s generally believed Buyers will incur an additional 3% to 5% of the purchase price as costs in their purchase of a home or condominium. In a Buyers’ Market (where there are lots’ of available homes and not many Buyers, sometimes a Seller will agree to pay a portion of these costs). In a Seller’s Market (where there are very few properties available and lot’s of Buyers in the market, it’s unlikely that the Seller will pay a portion of these costs).

Financing Costs(1.5% – 3%);
-Loan Origination Fee
-Loan Application Fee
-Cost of the Appraisal
-Credit Report Fee
-Mortgage Insurance Application Fee
-Prepayment of Mortgage Insurance
-Document Preparation Fee
-Title Insurance for Lender
-Interest on the Loan (From “Closing” to the 1st scheduled payment)

Escrow Fees (Charges vary depending upon the purchase price of the property. These are generally split equally between the Buyer and the Seller.  Example of $1,350+ for a $399,000 Sale Price)

General Inspection – ($350 – $500)

Sewer Line Inspection – ($200)

Homeowners Insurance

Property Taxes (Reserve Account)

Home Owners Association HOA (Condominium or Planned Unit Development)
-Document Transfer Fee
-Move-in Fee
-HOA Dues (one or two months)

If you have any comments or questions about this article, please email me at smeyers@kw.com.
If you would like to read other real estate articles I’ve written and published on-line, go to;

http://www.ourseattlehome.wordpress.com

Steve Meyers is a Managing Broker at Keller Williams Real Estate in Seattle, Washington. He can be reached at (206) 972-3328 or smeyers@kw.com.

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