HOW MUCH MONEY DO I NEED TO MAKE AN OFFER?

The REALTOR® you hire will work diligently to negotiate the contract terms you want and/or need. Below are some upfront expenses you should prepare for:

TO MAKE AN OFFER YOU MAY NEED THE FOLLOWING:
The figures listed below are ESTIMATES and can be negotiated between a Buyer and a Seller.
Please consult with your REALTOR® for the most beneficial terms that fit your specific needs.

TYPE	AMOUNT	DESCRIPTION	WHEN TO PAY

Earnest Money	Be prepared to pay at least 1% of the purchase price	NEGOTIABLE. Earnest Money is offered in “good faith” to show seriousness in an offer. Your Earnest Money deposit is typically applied towards your Down Payment and/or Closing Costs on closing day.	Within 3 days after your offer is accepted and executed.
Option Fee	$25+/Day	NEGOTIABLE. An Option Fee is payable to a seller for the right to terminate a contract for any reason during an Option Period. An Option Period can be any number of days. (Five to ten days is customary.) Option Fees are credited back to the buyer on closing day.	Within 3 days after your offer is accepted and executed.
Home Inspection	$385+	Not mandatory, but highly recommended. Fees vary by Inspector, square footage, and location. Additional fees may apply for additional amenities (e.g. appliances, pools)	Home Inspections are typically scheduled and paid for during an Option Period. Some inspectors might bill at closing. Call inspectors to inquire.
WDI Inspection	$100+	WDI: “Wood Destroying Insect” – this includes termites and carpenter ants. [Mandatory for VA loans only. All others are optional.]	WDI Inspections are typically scheduled and paid for during an Option Period. Some inspectors might bill at closing. Call inspectors to inquire.
Appraisal*	$575+	If you’re obtaining financing, this will be scheduled by your lender. Most lenders require payment when scheduling.	Appraisals are typically ordered shortly after the Option Period Expires.
—-	—-	—-	—-
TOTAL UPFRONT EXPENSES based on $250,000 sales price	$3,685 +/- (Estimate)	BASED ON THE MINIMUMS NOTED WITH A 5-DAY OPTION PERIOD.	This is money you should have available when making an offer. Once your offer is accepted, the clock will start ticking on deadlines. It’s imperative that funds be readily available.

Updated: 03-23-2023

*Appraisal: An appraisal is arranged by your mortgage lender. An Appraiser offers an opinion of value (fair market value) of the home you are trying to buy. A home inspector and an Appraiser are two different inspectors.

The Appraisal Report is used by the lender to make sure the property is worth what you’ve offered to pay. Some lenders collect the Appraisal Fee upfront when ordering the Appraisal Inspection.

NOTE: If you qualify for Down Payment and Closing Cost assistance, the $3,685 estimate might be all you need to buy your new home.

One final note…

KEEP IN MIND: There are 4 types of expenses when buying a home:

Upfront expenses (in the chart above)
Down Payment (varies by loan type)
Closing Costs (varies by lender, title)
Pre-Paid Items (varies by taxes & insurance for each property)

So, if someone is advertising, “zero down,” keep in mind that there are other expenses to account for. (Yes, even for Veterans using a VA loan).

*Click HERE to learn about Down Payments, Closing Costs and Prepaids.

ANOTHER HELPFUL TIP… if you need closing cost assistance but don’t qualify for a Down Payment Assistance (DPA) program, DON’T WORRY! We can STILL work on negotiating to have some or all of your closing costs and/or Prepaids covered by the Seller (or Builder)! ASK ME HOW.

FB_IMG_1627325327296 Val J Aranda, REALTOR® & Certified eXp University Mentor
“Coaching Texas Home Buyers and Sellers since 1998”

A Wonderful Life Real Estate Group
Brokered by eXp Realty, LLC

Call/Text: 210-378-5987
Perfecthomefinder@gmail.com
http://www.aWonderfulLifeRealEstateGroup.com

If you still have questions about the home buying process, I am at your service SEVEN DAYS A WEEK! I keep my phone on after 5:00 pm to help accommodate your busy work schedule. I’m “on-call”, even after everyone else clocks out!