One question I often get from home buyers is, “how much does it cost to purchase a home?” Let’s break it down:
The home seller typically pays ALL agent commissions. This means that, as a homebuyer, working with a real estate agent to purchase a home usually won’t cost you anything (including new builds!)
Your down payment is often 3-20% of the purchase price. VA and USDA loans require $0 down, and if you are a first-time homebuyer, you might be able to get down payment assistance to further reduce upfront costs!
Closing costs are typically 2-3% of the home’s purchase price. This means that, if you buy a $500,000 home, your closing costs will range from $10,000-$15,000. The average home inspection for a single-family home will cost between $300-$500.
Typical title fees are usually somewhere around .5% of the purchase price. The average home appraisal for a single family home will cost between $500- $700. This fee is oftentimes wrapped into your general closing costs. Home warranties typically range from $450-$900 annually. It’s not required to get a home warranty, but it’s highly recommended.
It is possible to negotiate seller concessions into the contract which means the seller would pay for some or all of your closing costs.
Have questions about the home buying process? Send me a message. I’m happy to help answer any questions!