Buying and Closing a Home: Here’s How Much It Really Costs
The home buying process is not yet complete if your offer is accepted and you have received a mortgage. That’s how much you actually have to pay to close.
In today’s hot real estate market, many sellers find tons of buyers interested in their property… In fact, nowadays, home sellers often make multiple bids for their homes.
If you’ve received multiple offers from interested buyers, you’re in a great position. But how do you decide which one to take? Here are some factors to consider.
Price is important, but look at other terms
Most home sellers want the highest possible price for their homes. The result is obvious: you leave with a lot of money in your pocket.
But while the amount a buyer is willing to pay is extremely important, it usually shouldn’t be Only the thing you look at when you get multiple offers. There are a few more key selling terms that can be compared.
Study the following questions carefully.
Are there any unforeseen verification circumstances?
Most home buyers make bids subject to satisfactory verification. In fact, they create conditions for a sale, and it will take place only if the audit does not reveal serious problems.
If there is an unforeseen inspection event, this means that if the inspector discovers something wrong with the property, the buyer can use this to reopen price negotiations. And home inspectors almost always find something wrong with the house.
If you have two offers that are close in price, but one buyer offers a little more and needs verification, and the other offers a slightly lower offer, but not requiring inspection, you may need a second buyer.
By eliminating the checkout problem, you reduce the likelihood of a problem that will disrupt the sale or that the buyer uses as leverage to get you to accept a lower amount.
Are there any unexpected financing costs?
Homebuyers also often provide contingency funding. This means that if they cannot get approval for mortgage loanthey don’t need to go through a sale or lose their deposit.
Unfortunately, unforeseen financing means that your sale is contingent – the borrower must be creditworthy and get a loan. This may not be an obstacle to the deal, but if you are going to accept an offer with such an unforeseen circumstance, ask the prospective buyer to provide proof of prior approval of the mortgage.
If there are similar suggestions, and one has the option and the other does not, you probably want to pick one without it.
Are there any other contingencies?
Buyers can include many other conditions, ranging from unforeseen circumstances requiring a home to evaluate what they are paying to a purchase condition when selling a buyer’s property.
The more conditions are put up for sale, the more chances that the deal will fall apart. Therefore, when everything else is equal (or close to it), it is usually better to go wrong by accepting an offer with fewer related conditions.
What’s the closing date?
If you want to move to a specific deadline, consider when potential buyers will want to close the deal. If you’re hoping to act quickly, you can prioritize shoppers who are willing to walk away with cash and want to close as soon as possible. On the other hand, if you don’t want to stick to a fixed schedule, you might prefer an offer with a flexible closing date.
Ultimately, the key is to look at the big picture: find a high-priced offer that is unlikely to fall apart and will allow you to relocate when you’re ready. Choose the one that meets most of your requirements in terms of price, timing and timing.
Historic opportunity to potentially save thousands on mortgages
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