It doesn’t cost the buyer anything out of pocket. The seller pays a pre-negotiated commission to the listing agent, who in turn pays the buyer’s agent through cooperation under the multiple listing service (Realtracs).
Closing costs are expenses incidental to the sale, such as appraisal fees, loan fees, recording fees, etc. They are usually between 2-3% of the home’s price and are sometimes factored into negotiations.
If you are not paying cash for your home, we recommend getting pre-approved with a local lender. Sellers need to know you are financially ready to buy, and many offers won’t be accepted without an accompanied pre-approval letter.
While a home inspection can cost upwards of $500-$1000 depending on the size of the home you are purchasing, we do recommend having one. It’s an unbiased evaluation of the physical condition of the home provided by a professional who does not benefit financially from a successful closing.
Earnest money is a deposit the buyer gives when making an offer on a house. If the offer is accepted, the buyer has a certain amount of time (stipulated in the contract) to provide the earnest money via check or wire transfer. It’s typically around 1% of the purchase price of the property and can become part of your down payment.