“Hidden” Costs of Buying a Clovis Home

It’s no secret that it is a buyer’s market these days.  Clovis home values have plummeted from their 2007 record highs and bargain priced Clovis foreclosures remain plentiful.  With interest rates at historical lows, it’s a great time to buy a Clovis home.

Before you buy a Clovis home, make sure you know the “hidden” cost of buying a Clovis home.

“Extra” Costs of Buying a Clovis Home

Purchasing a home is a complicated endeavor.  Not only do you have to find the right home, you want to make sure you don’t over pay for it.  Fortunately, we do all of the heavy lifting for you.  We’re experts at finding spectacular Clovis homes that are priced below market value.  That means you’ll pay less, save money on taxes, have lower monthly mortgage payments — and you can use that money toward other things (like furniture, a pool, etc).

What many Clovis home buyers don’t realize, however, is that the purchase price of a home is only one of the many costs you’ll have to pay.  Below are the other cost you’ll need to save up for:

1. Down Payment: All banks require buyers to pay a down-payment in order to purchase a home.  How much?  That depends on the type of loan you obtain.  Here’s an easy way to figure it out.  Multiply your down payment by the type of loan you choose;  You’ll need a 3% down-payment if you use HomePath Financing, 3.5% down for FHA loans, and 10-20% down for conventional loans  (20-25% for investors).  So, on a purchase price of $200,000 the down payment would be $7,000 ($200,000 X 3%) if you used an FHA loan.
2. Closing Costs: The typical closing costs for a Clovis buyer is approx. 3% to 3.5% of the purchase price.  Theses costs include loan origination, title, and escrow fees.  Most Clovis buyer’s in today’s market request that the seller pay a portion (up to 3%) toward the buyer’s closing costs.  Not all sellers will pay for closing costs, but many will in a buyer’s market so its worth asking for.
3. Home Inspection: The price range of a home inspection will depend upon the square foot of the Clovis home you purchase as well as what the inspector offers.  You can expect to pay approx. $225-$350 for a home inspection.  This expense is not covered through closing costs (see #2 above) so you’ll have to pay for this out of your pocket.
4. Additional Inspections: In addition to the home inspection, some Clovis buyers opt for additional inspections such as a pest or roof inspection (these are not covered in home inspections).  Depending on the type of inspections you want, we can give you an approximate costs of each one.  For example, pest inspections typically are under $75.
5. Appraisal: Local appraisal costs range from $400-$500. This expense may or may not be covered through closing cost (ask your lender).
6. Repairs or Updates: Almost all homes need some type of repairs or updates, including brand new homes.  For example, newly constructed homes typically don’t come with garage door openers, concrete out back and along the side, or backyard landscaping — which can run into the thousands of dollars.  And if you buy a Clovis foreclosure, it may need tens of thousand of dollars in repair.  But don’t worry.  We can help you find a “move-in ready” home to minimize these costs.  And our Realtors have extensive contacts to help you determine how much repairs or updating cost BEFORE you buy so there’s no surprises afterward.
7. REALTOR Commissions: Now for the good news.  As a Clovis buyer, you don’t have to pay a commission to our Realtors to help you find a Clovis home (the seller pays all commissions).  All you have to do is choose one of our Clovis Realtors to help you find your dream Clovis home.

Clovis Real Estate

Does buying a Clovis home sound complicated?  That’s what we’re here for.  At Clovis Real Estate, we make buying a Clovis home easy.  In 3 simple steps we’ll help you find your dream Clovis home.  Simply sign up below and find out why our clients rave about our Clovis house-hunting skills!

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This entry was posted on Tuesday, April 3rd, 2012 at 11:59 AM and is filed under Clovis Real Estate News, Home Buying Tips. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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