Pro's needed to close on a
property you would like to purchase
Your sales agreement probably includes a tentative
date for the sale to close. Whether or not you actually close on this
date depends largely on how fast you
solve unexpected problems and how well key realty professionals do
their jobs.
These are each party's responsibilities and why they play an important
part in closing a sale:
| |
Role and
Responsibilities |
Approximate Cost |
|
Your Agent |
Schedules
showings educate and protects your interests, troubleshoots
problems Makes sure everything is done so sale closes on time. |
2 to 3
percent of purchase price (Typically, the seller pays the commission,
which is then divided between brokerages. Standard commissions range
from 4 to 7 percent.) |
|
Mortgage Broker |
Processes
loan application, secures financing
Provides loan to complete the sale. |
1 percent to
broker (Typically, the lender pays the broker, and passes it on to you
in the cost of the loan.) |
|
Appraiser |
Estimates
the home's true market value
Verifies for the lender that you haven't agreed to pay too much. |
$200 to $400 |
|
Home Inspector |
Examines the
home's physical condition
Notifies you of all
defects and possible future problems. |
$250 to $500 |
|
Pest-control inspector |
Looks for
damage caused by termites, other pests and fungus
Flags hard-to-discover but potentially costly problems. |
$75 to $225 |
|
Title Insurer |
Ensures that
home has
clear title
Protects against future title claims that may threaten your ownership. |
$300 to
$1000, depending on sales price |
The Bottom
Line -Many experts advise buyers to consider appreciation a bonus, not a sure
thing. Buy a reasonably priced house in a stable and likeable
neighborhood, invest in home improvements that add value (not
eccentricity), and you're more likely to get your money back when you
sell. You may even make a profit, especially if you avoid buying when
the market is overheated. Just don't plan to retire on the profits when
you sell.