A few thoughts on what to consider while figuring out costs when buying a house in Athens, Georgia.
We’re all aware that buying a house requires a pretty sizable cash expenditure for the down payment and at least some closing costs. There are, however, many more expenses associated with buying a residence, including earnest money collateral, inspections, appraisals, and moving expenses. A lot of the expenditures hinge on the size of the house and the amount you finance. So before taking that big-money leap, you should spend some time evaluating costs when purchasing a residence in Athens.
1. Earnest Money Deposit
When you present an offer for a house, you need to be prepared to put down an earnest money deposit. The objective of this deposit is to show that you’re a serious buyer, and, as a result, the seller will pause other deals. The amount of earnest money deposit depends on the sale price. Generally, this amount is somewhere between one and five percent of the listing price.
Pro-tip, putting down a larger earnest money deposit helps you stand up in a multiple offer situation with very little risque to the buyer. Just make sure you terminate the deal during your due diligence phase.
In the thrill of buying a new residence, people often disregard inspection expenses in estimating the costs when purchasing a house in Athens, Georgia. But if you’re funding your acquisition with a mortgage lender, it’s an expense you just can’t get around. Typically, the inspection takes place within five to ten days of the agreement to purchase approval. A meticulous home inspection can set you back over five hundred dollars.
If you are not paying cash, here’s another inescapable cost because your banker will demand an appraisal. Seldom, sellers will handle some or all of the appraisal cost, although that’s not something you can rely on. Some times the cost of the appraisal is figured into the closing costs, it may be hidden this way, but you still have to pay it. Typically, the cos appraisal of an appraisal is around four hundred dollars or more.
4. Closing Costs
Without question, you should factor in closing costs. Although some sellers will indeed elect to pay for closing costs, most property owners will not pay the full amount. In seller markets, buyers rarely see a listing with an offer to pay for their closing costs. This tactic is reserved for slow-moving buyer markets to make a property stand out from the competition. If buyers do receive assistance from sellers to cover closing costs in a fast-paced market. It’s because the sellers chose to give a monetary concession instead of making the requested repairs to their home uncovered during the due-diligence period.
Those closing costs are third-party and lender charges that the buyer pays when the purchase is concluded. They can incorporate charges for wire transfer, survey, underwriting and origination, credit reporting, document preparation, title insurance, and recording. Closing costs frequently fall in the range of two percent and four percent of the purchase price – a pretty large number, in reality.
5. Moving Expenses
While evaluating the expenses when purchasing a house in Athens, Georgia, numerous people forget to figure in relocating costs because they are not an element of the actual acquisition. Nevertheless, it’s something you will have to handle even if you’re relocating to a new address within the same neighborhood.
If you don’t have a truck and trailer and some vigorous assistants, you’ll most likely have to seek the help of a moving company. Especially if it’s a long-distance relocation. If the move isn’t all that far, say, inside twenty miles, plus or minus a few miles, you will be spending around one thousand dollars or more. If you’re moving to the opposite end of the country, the move could cost five thousand dollars or more.
Therefore if you’re transferring to a different state, it’s plausibly an excellent idea to get rid of as many of your possessions as is possible. In some instances, for a very long-distance relocation, it could be more economical to purchase new furniture for your new place. Rather than pay for moving furniture, you have now.
Clearly, in determining the costs when purchasing a residence in Athens, Georgia, you want to look far ahead of the down payment and closing costs. There are, nonetheless, alternative house-purchasing possibilities that may assist you in paying a lot less upfront.