How Much Money Do I Need to Buy a Home?

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Of all the questions agents get from consumers, this is the one that tops the list.  It’s also the one that’s botched by more agents than any other question.  Here are some answers that I’ve heard over the years:

“You’ll need about 6% of the sales price.”  (Translation:  I would prefer to give you a round number because I don’t want to spend time with you and find out about your financial position and circumstances.  Oh yeah – – – I also really hate math.)

“That’s really tough to say.”  (Translation:  I really don’t understand the costs myself so I’ll just tread water and hope you don’t ask again.)

“Let me hook you up with a lender.”  (Translation:  See previous translation.)

“Let’s plug some numbers into the computer and see what it says.”  (Translation:  The computer god knows all.  Did I mention that I really hate math?)   

All of these answers inspire ZERO confidence with the consumer that the agent knows what they’re talking about.  If you’re a consumer, demand a better answer.  If you’re an agent, take some time to learn how to calculate closing costs and understand what the charges are for.  You’ll provide a higher degree of service for your buyer clients and they will appreciate it.

Oh by the way – – – it’s also the law in PA for an agent to provide consumers with their estimated closing costs prior to submitting any agreement on a property.

Want to get started?  Click on the link below to get your FREE copy of the “2016 Guide to Buyer Closing Costs.”  It will walk you through the Pennsylvania Association of REALTORS® “Buyer’s Estimated Costs” form.  The guide gives clear explanations for each line item, estimates for each charge, and covers a variety of different lending scenarios.

2016 Guide to Buyer Closing Costs

NOTE – There are some costs that are specific to my geographic region in Franklin County, Pennsylvania.  For costs associated with your region, see a local real estate agent.

All the best!


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