Once you’ve found the perfect home and secured the loan, all that’s left to do is start chipping away at those mortgage payments…right? In actuality, there are a handful of other, often-overlooked expenses that come with buying a home, but as long as you know what you’re getting into, they’re plenty manageable.
Take a look at our comprehensive list of all the costs of buying a home.
One-Time Payments & Closing Costs
Closing Costs
For buyers, closing costs are typically low and range from 2-5% of your purchase price. A lot of these costs are one-time expenses, and totals can vary from state-to-state.
If you want a better idea of what closing costs could be for you, check out this helpful guide on the average payments for each state.
Miscellaneous Fees
There are quite a bit of one-time fees bundled into your closing costs, but most of them are pretty inexpensive. Some of the most common expenses include the home inspection, appraisal, credit report, deed recording, land survey, notary fees, title insurance, and document prep fees.
Recurring Payments
Mortgage Payments
Mortgage payments are the most obvious cost when buying a home. These are your predictable, monthly payments decided by both the final price of your home and your down payment—in addition to a few other bundled costs. A larger down payment means a smaller mortgage payment, and it’s a good idea to pay this off quickly, since it will accumulate interest.
Property Taxes
Property tax payments don’t go towards just one thing—they actually cover quite a bit, like road construction, community maintenance, public works, and local government salaries. The exact amount you’ll pay in property tax is calculated by the county based on your home’s value, and the rates tend to rise and fall over time. Many buyers pay their property taxes through an escrow account set up by the lender.
Homeowner’s Insurance
It’s better to have insurance and not need it than need insurance and not have it, so homeowner’s insurance is pretty crucial to home owning. While it’s almost always required when you get a mortgage and then bundled into your monthly payments, be sure to double-check that you’re covered.
Private Mortgage Insurance
If you can’t afford a 20% down payment on your home, you’ll have to pay PMI as a way to ensure that the lender won’t go under if you default on your loan. You don’t have to pay PMI forever—it ends once you pay off 78% or more of the principal amount—but until then, expect to pay up to 2% of your loan amount annually.
HOA Fees
Moving to a neighborhood with an HOA? Your dues can range anywhere from under a hundred dollars to over a thousand, but they come with perks like landscaping and exterior maintenance, and some even include added benefits like swimming pools and fitness centers. Not all neighborhoods have an HOA, but your agent can tell you what your payments will be if yours does.
Utilities
Lastly, utility fees can come as a surprise to new homeowners who are used to renting. Depending on the size of your home, you can expect to pay a few hundred dollars per month for water, electricity, heating and cooling, and trash services. If you’re curious what your utility bills might look like, just ask your agent, and they can likely secure a few statements from the past owners.
Ready to Make an Offer?
When it comes to buying a home, the most important thing you can do is be prepared. While there are a handful of costs to keep in mind, the satisfaction of calling a place your own is well-worth it in the end.
Are you ready to get started on your home-buying journey? With years of professional and local experience, our team knows all about navigating the expenses that come with buying. Give us a call today at (540) 388-2541 to get a better idea of your costs, and let’s get started!
This epic Home Buyer Workshop event will feature on-site loan consultations. Come and learn about the first of it’s kind: “Love it or Leave it” program and have access to other premium programs not available to the general public!! Completely FREE event. There will be Q&A with industry’s best vendors: including a mortgage representative, a home appraiser, a title company, and a home inspector. Save your seat! RSVP by April 1st at 540-388-2541 or email: Jane@LicataGroup.com. We look forward to seeing you there!
Whether you’re looking for homes for sale in Lake of the Woods VA or Waterfront property in Virginia we are your Real Estate Advisors for Stafford, Fredericksburg, Spotsylvania, Locust Grove, Central Virginia, and Greater Virginia. Thinking of selling? In any market condition, “what is my homeworth?” is the #1 question asked by home owners. If you wish to sell your home, it needs to be sold for top dollar and in a timely manner. Pricing your home accurately, Pat will partner with you to make the selling process so much easier. Get started today by calling us at (540) 388-2541 or contact Pat Licata.
To see available Lake of the Woods properties, please visit our site.
Love is in the air! We’re not talking about Valentine’s Day — we mean all of the buyers falling in love with your home thanks to these easy staging tips. From simple DIY projects to decor and de-cluttering pointers, these effortless staging tips will wow the next buyers that step through your front door.
Clean, Clean, Clean
The single most important step for staging success? Clean. Break out those rubber gloves and scrub every corner, crack, and crevice that you can find. Not only will a clean home convey to buyers that you take good care of your space, but it’ll also ensure less work and fewer problems when they move in.
The home-staging cleaning process is more than just regular vacuuming, dusting, mopping, and scrubbing; you’ll need to go the extra mile. We’re talking waxing the floors, deep cleaning the carpets, polishing all of the handles and doorknobs, and more. Make an extensive list, and devote a whole weekend to tidying up.
Tackle Any Unfinished Projects
Do you have a notoriously leaky faucet that you haven’t gotten around to fixing, or a stain on the floor that you’ve been covering with a rug? Now is the time to take care of it.
Take an inventory of any unfinished projects you’ve accumulated. Whether it’s repairing a lighting fixture or patching a hole in the roof, ticking off pending projects is critical in the staging process. The last thing a buyer wants is to inherit problems from a home that they could’ve avoided.
Try Small-Scale DIY
You don’t have to add an extra room or install an in-ground pool to make your home stick out to buyers. There are plenty of simple and affordable DIY projects, from decor improvements to easy upgrades and repairs, that’ll make your home pop!
Need some ideas to kick-start the process? Try putting a fresh coat of paint on the walls, replacing outdated lighting, upgrading cabinet handles and doorknobs, or de-popcorning your ceiling — just a few of the many easy ways to elevate your home’s look.
De-personalize and De-clutter
While decorating plays a big role in catching a buyer’s eye, there’s a fine line between standing out and overdoing it. While you might like your style of decorating, buyers could find it off-putting, so keeping it neutral is key. Using house plants and seasonal greenery is always a solid option for filling empty space!
While you’re putting up that new decor, you’ll want your space to be clutter-free and open. If you have any old couches, outdated decorations, or unnecessary accent pieces, take the opportunity to get rid of them before showings start.
List Your Home with Local Experts
From helping you get your DIY on to handling the complicated closing paperwork, our team is dedicated to helping you have a successful and stress-free real estate experience.
Are you ready to get started on your selling journey? Don’t hesitate to give our team of local experts a call today!
Whether you’re looking for homes for sale in Lake of the Woods VA or Waterfront property in Virginia we are your Real Estate Advisors for Stafford, Fredericksburg, Spotsylvania, Locust Grove, Central Virginia, and Greater Virginia. Thinking of selling? In any market condition, “what is my homeworth?” is the #1 question asked by home owners. If you wish to sell your home, it needs to be sold for top dollar and in a timely manner. Pricing your home accurately, Pat will partner with you to make the selling process so much easier. Get started today by calling us at (540) 388-2541 or contact Pat Licata.
To see available Lake of the Woods properties, please visit our site.
Imagine, after weeks of searching, that you’ve finally found your dream home. It’s in the perfect location with the right features and exactly the amount of space you need. But after requesting more information, your agent informs you that there are already several offers made on the house. How do you stand out in a busy market and snag your dream home?
When buyers are looking to make a lasting impression on sellers, they often opt to submit a letter to the seller. In fact, a recent study found that buyers who submitted letters were 9% more likely to have their offer accepted.
A Buyer’s Letter can work both with you and against you, so it’s important to understand what they are and when you should use one.
What is a Buyer’s Letter?
A Buyer’s Letter is pretty much what it sounds like — a letter written by the buyer for the seller in order to stand out in a busy market. The letter is your chance to make a case for why you should get the home over other buyers.
Many people opt to write about how they envision their lives in the home, how well they would take care of it, how much owning this specific home would mean to them, and similar sentiments.
You might also use this space to talk yourself up, bringing up steady finances, your down payment, and job security — things geared towards making the seller confident in choosing you.
Advantages of a Buyer’s Letter
A Buyer’s Letter sets you apart from the crowd and makes you more than just an offer on a sheet of paper — it allows you to connect with the seller on a personal level. In a constantly growing and changing market, being able to stand out or connect puts you a big step ahead of other buyers.
Is the home close to a golf course? Does the seller have bikes in their garage? Are there signs of pets in the home? If you notice you have common interests, including them in the Buyer’s Letter can elevate your standing.
When you choose to forgo a Buyer’s Letter, you miss out on the chance to advocate for yourself, which can go a long way in the seller’s final decision.
Disadvantages of a Buyer’s Letter
While there are plenty of pros to using a Buyer’s Letter, there are also pitfalls to consider. Making your case is great, but it does give the seller leverage. If you really love the house as much as you say, then what’s to stop the seller from raising the asking price?
Maybe the seller accepts your offer, and you move to the home inspection stage. If issues turn up, then the seller might refuse to make costly repairs, assuming that you’ll buy the house no matter what.
Another unexpected con of a buyer’s letter? It can be tricky for sellers to navigate around discrimination issues. If a seller picks a buyer of a certain race, religion, gender, or family status instead of another, they could face backlash. Be aware of this when writing your letter so as to not put the seller in an uncomfortable position.
Need Help Standing Out?
If you’re kicking off the home-buying process and need help standing out, we’ve got you covered. Get in touch with us today, and we’ll help you secure your dream home, and answer any and all of your questions in the process.
Whether you’re looking for homes for sale in Lake of the Woods VA or Waterfront property in Virginia we are your professionals for Stafford, Fredericksburg, Spotsylvania, Locust Grove, Central Virginia, and Greater Virginia, we are your proven Real Estate professionals. Thinking of selling? In any market condition, “what is my homeworth?” is the #1 question asked by home owners. If you wish to sell your home, it needs to be sold for top dollar and in a timely manner. Pricing your home accurately, Pat will partner with you to make the selling process so much easier. Get started today by calling us at (540) 388-2541 or contact Pat Licata.
To see available Lake of the Woods properties, please visit our site.
