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The Extra Housing Costs: How to Prep Your Buyers

December 18, 2018

Usually, home buyers don’t know what to expect when budgeting and planning ahead for the costs of homeownership. There are some smaller fees mixed into a home purchase that can get overlooked, but they still add up. HouseLogic.com recently featured some of the lesser-known fees to homeownership that buyers should budget for, including:

Home inspection 

  • Typical cost: $300 to $500

A home inspection can help buyers spot any structural or other conditional problems with the home before they buy.

Appraisal fee

  • Typical cost: $200 to $425

This report goes to the lender to make sure the property that they’re buying is worth the amount they’re paying.

Title services

  • Typical cost: $150 to $400

This cost covers a title search of the public records on the property, as well as notary fees, government filing fees, and some additional items.

Survey report

  • Typical cost: $150 to $400

This report will outline the property’s boundaries.

Application fees

  • Typical cost: $75 to $300

The lender will run a credit report and charge an application fee before approving anyone for a loan. Lenders can provide a breakdown of the application fees so that buyers are aware of all the costs.

Visit HouseLogic.com and share the full article with your clients about these lesser-known costs of buying a home.Source: “8 Lesser-Known Fees That Factor Into the True Cost of Home Buying,” HouseLogic.com (December 2018)

Forecast: 77% of Homes Will Sell Below List Price

December 14, 2018

Home sellers may need to get more realistic heading into the new year with signs of a slowing housing market. As for home shoppers, they may find more deals. Seventy-seven percent of current listings will likely sell below the original list price in the first quarter of 2019, according to a new forecast released by Knock, an iBuyer company that offers home sellers instant cash offers on their home.

The company analyzed on-market listings in the largest metros to determine the markets with the highest percentage of homes that are predicted to sell below their original list prices. “Knock has developed six predictive algorithms to determine how much our home trade-in customers’ homes will sell for and when,” says Sean Black, co-founder and CEO of Knock. “By applying these algorithms to the top U.S. markets, we hope to help more home buyers find and act on the best deals, and increase overall market fluidity.”

Home price increases have slowed in the past few months. Still, prices are up about 5 percent year over year, according to housing reports.

Sellers who are pricing their homes too aggressively may end up selling just below their original prices and even below market value because the home lingers on the market for a longer period of time, Knock researchers note. They found that 92 percent of listings that had been on the market two months or longer sold below their list prices. On average, these homes sold for 1.5 percent less than the overall market.

Source: 

National Knock Deals Forecast Identifies Miami, Houston, and Chicago as Top 3 U.S. Markets for Deals on Home Prices Heading Into 2019,” Knock (Dec. 12, 2018)

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