Get Help From Your Agent To Assess Your Ideal Price Range
Posted on: 15 December 2016
When you're shopping for a house for the first time, it's exciting to think of buying something at the upper end of what you can afford. However, you may soon come to regret this purchase, as it could leave you financially strapped if you weren't aware of the costs beyond the price of the house. It's a good idea to work closely with the real estate agent you've hired to talk frankly about how much you've saved for a down payment, how much you earn, and how much running the house will cost you. Real estate agents are highly adept at financial topics, which means that your agent is the right person to help you calculate your ideal price range for a home. Here are some ways that he or she can help.
Utilities Costs
It's difficult to predict how much your utilities will cost when you own any given house, but your real estate agent can obtain this information for you. The agent will reach out to the seller agent to determine how much the current homeowner is paying for electricity, water, and gas, and then they will relay this information to you. You can then factor these numbers into your budget, which will help you and the agent work on deciding how much you should spend on a home. For example, if you've had your eye on a $215,000 home and your agent pulls the utilities costs, you may find that you want to find a home that is a little less expensive.
Closing Costs
When you buy a home, you'll need to pay closing costs. This means that you'll be spending a little more than you may expect as a first-time buyer. Your agent will guide you through the closing costs that you'll need to pay and precisely illustrate the cost of each. For example, a common closing cost involves paying a real estate lawyer, which is something you may not have considered.
Living Costs
Many real estate agents can provide you with data about average living costs for an area. You'll be able to factor these costs against what you earn through your income, which should give you a sense of whether a certain neighborhood is too pricey. For example, a pricier neighborhood may have higher grocery and gas prices than a lower-end neighborhood. By keeping these numbers in mind, you'll be able to decide whether you can afford to live in the more expensive neighborhood or whether it might be better to look for a home in a cheaper area.
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