An Introduction To The Cost Of Buying A Home

An Introduction To The Cost Of Buying A Home

It never hurts to ask questions.

They say the only dumb question is the one not asked. That couldn’t be any more true when applied to the world of real estate.

CENTURY 21 Gavish Real Estate prides itself on helping first-time buyers navigate the often tumultuous waters of home ownership.

We often hold seminars on this very topic, focusing on where buyers can find programs to assist them in coming up with funds for a down payment.

Our presenters will often cover an array of topics and answer a number of questions from the curious and home-hungry audience. It’s what we love best.

We’ve found through the course of conducting these seminars and from listening to the array of buyers we have that many of you may not fully understand some of the more nuanced aspects of a real estate transaction.

And that’s fine. It’s out job to educate you.

For example, did you know that you don’t pay a fee for buying a house?

Sure, you pay for many of the things related to the home, but you don’t come out of pocket to the real estate agents who assembled the sale.

Outside of very rare cases, the person selling the house pays the fees. They pay a commission to the listing agent, who then shares a portion of that with the buyer’s agent.

Commissions are different in each market, but tend to hover nationwide between 6 and 10 percent of the sale price.

Buyer agents tend to get either half or just under the selling agent’s income.

We mentioned that there are number of payments you’ll have to make as a sale finalizes; these are called closing costs.

These fees, which can vary greatly, range from loan origination fees, inspection costs, pest control costs, title fees, home owners’ insurance, and title fees.

Yes, it can be a lot to handle, we get it. These are the costs of buying a home.

This is why that even though a number of programs exist to assist you with a down payment, it’s very important that you do have a fair amount of cash ready when you start looking for a home.

However, in total, closing costs remain a relatively small percentage of the price of the home. They tend to vary from 2 to 7% of the total come purchase cost.

For a home in Las Vegas where the median sale price is around $220,000, that could mean needing at least, $11,000 in cash. You’d probably want a little more, as closing costs for a new home in Las Vegas are not always static.

In summary, we’re nothing if not transparent. We want our buyers to understand what it takes to own a home.

That being said, we believe you can do it. And we believe we can help.