Are you ready to make an offer on a property and wondering what to plan for financially? Here are the 3 things to budget for with an accepted offer. Please be mindful: prior to entering into an offer, your Realtor should have explained all this to you. If they didn’t, please get with them and ensure you are advised based on local requirements and best practices.
Here are the 3 things to budget for with an accepted offer:
Earnest Money Deposit
First will be your earnest money deposit (often seen shorthand as EMD). This amount is typically tied into your purchase price. On average, unless negotiated otherwise, expect this to be due within 3 days of your accepted offer.
Inspection Costs
Next will be inspection costs. These fees depend on what you are be looking to inspect. In general, most people will work with a home inspector for a general home inspection. Depending on the age and condition of the structure, you might look to have some additional inspections done (outside of a routine home inspection: wood destroying organism (WDO), septic or well testing are among the most common in residential transactions). Depending on the condition of the structure, some home buyers will look for additional foundation and/or roof inspections. These costs will be out of pocket to the buyer. Please remember-depending on the contract you are buying under (the purchase and sales agreement or an as-is contract) your mileage may vary on requests for repairs from the seller.
Appraisal Costs
Lastly will be the appraisal costs. This typically comes into play when there will be financing/mortgage. However, a cash buyer might want the appraisal to gauge the estimated value of the purchase. Depending on your lender-this might be something you see a credit for at closing
3 Things to Budget For With An Accepted Offer
Buying a home can be an exciting time and keeping tabs on expenditures is important. Know that between your EMD, Inspection Costs and Appraisal Fees – you will have some incurred costs during the contract phase. All of these expenses come due prior to closing. Please be mindful, closing will come with its own set of costs. If you have questions about what costs to expect or what the offer process looks like – please contact me. I am happy to answer questions that I can. When I don’t know or have insight – I am happy to put you in touch with industry professionals in their area of expertise.
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Are you looking to move to the area but not ready to buy quite yet? Ask me about my rental available in the Waterford Lakes neighborhood of the SilverLeaf Community in St. Augustine (572 Coastline Way, St. Augustine, FL 32092).
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