Consider all the Costs
The most responsible homeowners, however, are also prepared for other costs, both during the transaction and after the loan is officially closed.
Experts recommend that you include in your budget enough to cover your down payment, closing costs, origination fees and broker’s commission by the time you are ready to close the deal for your new home.
Around the corner includes additional costs, including property taxes, insurance premiums and any homeowners association dues. Taxes and HOA dues vary, so be sure to ask for details from either your Realtor or HOA manager.
How Much Does a
New Home Cost?
When you’re thinking of getting a mortgage to buy a home, the first cost that you have to consider is the home’s listing price. As of January 2020, the median sale price across the United States is $306,000, which is a 6.7% increase from this time last year, according to data from Redfin.
Of course, that number can vary widely, depending on where you live. No matter your budget, be prepared to find some savings by being strategic and creative with your Realtor.
How to Save Some Money
One of the best ways to save money on a new home is to take advantage of an inspection that reveals issues with the home.
Let’s say your inspector finds an issue with the roof that may require it to repaired within the next few years. It will make sense to ask the seller to reduce the price of the home by the fair market value for a new roof to protect yourself from getting stuck with this big cost once you move into the home.
You should also be compensated for smaller issues, like interior or exterior damage to the home, by asking the seller to make the necessary price reductions on the home.
Don’t be afraid that you may lose the house. Especially if the seller is motivated to sell, you may find that they are willing to make certain cost concessions to get the deal done.