If I had to think of one topic first time home buyers are typically surprised about in my buyer consultation… it would be the fees needed upfront in the transaction.
These fees are your
1. Earnest money
2. Option fee
3. Inspection fee
4. Appraisal fee
When buying a home in Texas, you have to write a check for your earnest money. This check shows your earnestness or your seriousness regarding moving forward with the contract. In our area, the typical earnest money deposit is 1% of the home sales price.
Secondly, we have our option fee. The buyer pays the option fee to the seller, and in this 7 to 10 day time period, the buyer does their due diligence and orders a comprehensive inspection of the property. The fee gives you some security that you can receive your earnest money back. If you withdraw from the contract due to the condition of the home, or you simply change your mind.
Then we have your inspection fee. After you have an executed contract, you’ll want to do an inspection on the home to make sure we don’t have any issues that come up later on in the transaction. You want to use a licensed inspector. Their fees are typically based on the square footage of the home.
Lastly, you have your appraisal fee. The lender will request you pay this fee to make sure the home value matches what you’ve offered and not less. I go more in depth regarding these fees in my buyer consultation appointments. If you’re looking to purchase in the next 3 to 6 months, go ahead, send me a message to get on my schedule. And, look out for my next video discussing down payment and closing costs.
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