3 Reasons Why Your Closing Costs Will Vary Depending on the Type of Home You Buy
Savvy home buyers who are preparing to make a real estate purchase should do their research and understand that they need to save money for not only the down payment, but the closing costs as well. The closing costs can account for as much as three to five percent of the sales price in some cases, so this can be a rather sizable amount of money.
Some buyers however, may not realize that the amount of closing costs can vary considerably based on the home that is purchased. With a closer look at why this is, buyers can make a more educated decision when selecting a home to purchase.
Prepaid Taxes And Insurance
One of the most significant closing costs relates to prepaid taxes and insurance, and both of these expenses are directly tied to the location and value of the property. Consider that the property tax rate can vary based on the city, county, and state. Real estate insurance can also vary based on the type of construction of the home, if the home is located in a flood plain, and other factors. These are only a few examples of how the location and property type can impact these fees, and home buyers should consider the costs associated with the tax rates and insurance when selecting a property to purchase.
Third Party Reports
There are several third party reports that are commonly paid for at closing, and these include an appraisal, a survey, a pest inspection and a property inspection. The third party reports may vary in cost based on the size of the home, the amount of land that is being purchased, and even the condition of the property. Those who want to keep their closing costs lower may consider learning more about how these fees are calculated up-front before finalizing their plans to buy a specific home.
Title Insurance Fees
Title insurance fees are another typically sizable expense for home buyers, and this insurance offers protection to the lender if the title is not clean. Title insurance can increase based on the size of the property as well as different factors that are revealed with a title search. This information can be difficult to learn with an initial home search, but home buyers should be aware that title defects can increase closing costs.
The location, size, age and construction of a property all impact the closing costs. Those who are shopping for real estate may be inclined to make a decision that keeps closing costs down, and they can reach out to their knowledgeableTrusted Advisor | REALTOR® from Martin Real Estate Advisors, a JP & Associates Realtors® Company, for more assistance with their particular situation. Call or Text "3R" to (469) 262-5411 for more information.
Author:Annette Bruen Phone: 972-977-3221 Dated: August 8th 2015 Views: 729 About Annette: PERSONAL SERVICE. PROFESSIONALISM. POWERFUL NEGOTIATION. PLAN EXECUTION.
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"My husband and I met D'An when we returned to Texas in 2010. She helped us find a couple of rentals until we could decide on the area we wanted to buy.
We could not be more happy with D'An's knowledge of the area and acreage properties. She is the consummate professional and handle our "should have been easy, this is a long story" close with ease. She worked tirelessly through the night to ensure the survey was properly filed and we were able to close on time!! No matter how many HOA's I would ask her to research, she would and always come back with answers promptly. If we ever decide to sell our home, D'An will be the one we call!!
Thanks D'An for tirelessly driving us all over the metroplex and almost into OK to find us the PERFECT house and PERFECT location!!