In this episode of the Love Living DC Show, Realtor Jennell Alexander tells you about What Closing Costs You Can Expect to Pay When Buying a DC Home.
Buying a home can be an amazing experience. It is always an honor to guide my friends and clients through this journey. A new home can change your life for the better: moving closer to work or family or sending your children to better schools are factors that can improve your overall quality of life.
However, one of the most common mistakes that buyers make when it comes to preparing to purchase a home, is failing to budget appropriately for closing costs. In doing this, buyers are often blindsided to the reality of settlement fees, which can ultimately affect his or her ability to purchase a home.
The Truth About Buyer Closing Costs
While sellers are responsible for some of the fees associated with a real estate transaction, buyers in Washington, DC should expect to pay between 3 and 5% of the total sales price in closing costs. On a typical home priced at $400,000, a buyer should anticipate allocating roughly $13,000 toward closing costs …we’ll talk more about that later!
Before you decide to purchase your first home, meet with a local real estate expert to discuss the true cost of purchasing a home. As a licensed Realtor®, I’m able to provide you with one-on-one coaching to explain every single item that you’ll be responsible for during the home buying process, your obligations as a buyer, and what you can expect to pay out of pocket, upfront.
Work with your Realtor® and lender to understand and budget for Closing Costs. Buyers in the Washington, DC market are typically responsible for the following items and fees associated with the settlement of real property:
- Loan-related fees such as mortgage origination or “points”
- Home Inspection Fee
- City Recordation and Transfer Taxes
- Appraisal fee
- Title Search
- Title Insurance
Hope for the best but expect the worst! Depending on the type of market we’re currently experiencing, you may be able to request a concession toward some or all of your closing costs. This would be on a case-by-case basis and I will need to guide you making that determination.
If you fail to plan, you plan to fail
Going into a real estate transaction without an experienced guide is a recipe for disaster. Without this critical knowledge, you can be blindsided by settlement fees, which will ultimately affect your ability to purchase a home.
Fortunately for the home buyers that I work with, a complete review of all costs associated with purchasing a home is one of the 27 steps on my customized Buyer’s Checklist. Buying a home can be a stressful experience. With me, you’ll always know exactly what’s needed, and when, so you never miss a step along the way.
At this point, you may be convinced that you may need some guidance around closing costs. But you may also be thinking that you have no idea where to start. If you’re thinking about making a move, I can help you through the process. Just send me a message or text me at 202-717-2276. . No pressure, no sales tactics, just the help and guidance that you need!
Finally, if you’re a resident of the Washington, DC area, I want to let you know that I have a free Facebook Group for members of our community! It’s called, Love Living DC. It’s a great place to join a strong network of Washingtonians who get weekly information about the best events and activities happening in and around town. If you’re interested in joining, check out this link: Love Living DC Private Facebook Group.
If you have any questions about the closing costs you need to purchase your next home, leave a comment below or contact me directly by text or email. Thank you so much for joining me today. I’ll see you in the next episode!!!