23 February 2018

Buying And Selling - The Costs You Need To Know About

If only buying and selling a home was as easy as putting pen to paper to transfer the deeds. According to the National Association of Realtors, home sales were down 3.2% in January 2018 - the second month in a row that a decline was recorded. So, why are sellers failing to attract buyers and why are buyers holding back from making a purchase? One thing that could be to blame is the rising costs of properties. The average selling price of a home is now $240,500 and when you factor in the additional costs of buying and selling, you can see why individuals are put off from making the leap. This is especially true for those looking to buy a first home who particularly feel the financial squeeze.

Tips for sellers

As a seller, it’s your job to make your home the best it can be to lure potential buyers through your front door. You might think investing in a new kitchen or bathroom suite is a waste of time and money, but if it’s going to add value to your home and, ultimately, sell your property then it’s cost definitely worth considering.

When the deal has been done and a price agreed, one of the first things your buyer will do is request a professional home inspection to ensure that the property is kosher and doesn’t have any significant problems, such as damp or electrical faults. Should the inspection pick up any issues, then your buyer might pull out of the sale, request a reduced price or demand repairs are completed before the purchase continues. Therefore, to prevent delays and higher repair costs, it’s best to have your home checked for any issues prior to sale and get them sorted before placing the for sale sign outside your home.

What should buyers consider?

Does the house you’re buying require extensive renovations? If so, you need to consider these costs when making your offer. It’s all well and good comparing the property you’re considering making an offer on to the sale price of the one across the road, but if it requires $20,000 of work, then it’s probably not such a good deal after all.

Additional costs when buying a home soon mount up. There are legal fees to shell out for, between $350 and $550 for a home inspection and when you’re in your new property home insurance is a must to ensure your property, its foundations and your personal belongings are protected in the event of a natural disaster, such as a flood, an accident or a burglary. You’ll likely also want to complete some renovations and basic DIY work when you move in, too, such as giving the kitchen a lick of fresh paint or putting down new flooring in the hallway. To be sure you can afford everything that comes with a home, you may be best putting down a smaller deposit on your home and saving the extra cash to cover your additional costs.

There’s no denying that buying and selling property can be expensive, but, thankfully, there’s plenty of things you can do to ease the pressure of these fees and to ensure a smooth purchase.

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