What are the hidden costs in a home purchase? Once you've had your offer accepted, there are additional fees you are responsible for. First, there are home inspections. A lot of buyers forget about the fact that they are expected to pay for the home inspection out-of-pocket. Sometimes there are additional auxiliary inspections, such as main sewer line or chimney inspections. All told, inspections can run from $1,000 to $2,000, so make sure you have that money in your savings account. These inspections are not mandatory, but we highly recommend having them done. A home inspection can save you tens of thousands of dollars in repairs down the line.
Buyers also need money for home maintenance upon close of escrow. Home maintenance includes cleaning, yard care, or pressure washing, just to name a few. These can add up quickly. In fact, the National Association of Realtors estimates that American homeowners pay an average of $3,500 a year to outsource home maintenance. Of course, it's cheaper to do it yourself, but you will still need some money. We recommend that our clients ask the seller how much gardening or pool services cost so you can factor it into your monthly payments. When buying a home, don't forget about utilities. When you buy a home, ask the seller for a copy of the last two utility bills. If you can, get the bills for peak months in the summer and winter so you can plan ahead. Finally, there are HOA and escrow fees that are the buyer's responsibility. As you can see, there are a lot of other costs to take into account when purchasing a home. If you have any questions about today's video or real estate in general, give us a call or send us an email. We would be happy to help you!
"I love working with first-time home buyers. I recently was able to help Peter and Marleni close on their first family home! The process wasn’t without hiccups, but being able to navigate this couple through the home buying process was a very rewarding experience for me. I pride myself in being in constant contact with my clients, and it was no different with Peter and Marleni. It’s my job to be there to support them throughout their transaction, and we both couldn’t be happier with the results!" - Scott
Now is a great time to become a move-up buyer. Here's why. According to the National Association of Realtors, Generation Y and Millennials are 34% of the entire buyer pool. People between 35 and 49 years old, aka Generation X, make up 27% of the buyer pool. People between ages 50 and 68 make up 29% of buyers while buyers aged 69 years and up are 10% of the market. Overall, 88% of recent buyers financed their home purchases. When you look at Generation Y, 97% of buyers financed their home. The Silent Generation, or buyers aged 69 and older, only saw 61% finance home purchases.
When it comes to a home purchase, the National Association of Realtors says that younger buyers finance larger shares. The typical Generation Y down payment is 7% while the Generation X down payment is 10% and the Silent Generation down payment is usually 22%. Buyers have a variety of sources for a down payment on a home. Younger buyers typically draw from savings, while older buyers use proceeds from the sale of a previous home. Younger buyers are more likely to use a gift or loan from a friend for their down payment. What does this all mean? Since we're seeing a large group of Millennials buying homes, it makes sense for you to move up into a new property. 2015 was the first year where we saw a lot of contingent sales go through without any issues. Sellers are beginning to accept contingencies easier than in years past. If you're a move-up buyer looking for something bigger, this is the time to buy. Interest rates are low right now, but they are expected to rise in 2016. With so many Millennials looking for their first homes, now is a good time to sell yours and move up into your dream house. If you have any questions, give me a call or send me an email. I would be happy to help you!
