02/18/2022
💰 LISTEN! If you plan on buying a house this year in the Fort Lauderdale/Miami/Palm Beach 🏖 😎 please listen up. Sellers aren’t paying a penny towards closing costs and everything is selling well over asking price. Buyers are getting their offers accepted everyday but if you want to be one of them, you have to submit your highest and best offer! Bring your 🅰️ game. So how much money do you need???
Let’s break it down 👇🏽🏠
1️⃣ Earnest money - 5% of the purchase price or more if possible. If you want to let a seller know that you’re serious, you have to have some skin in the game. You will deposit these funds right after contract acceptance (within 3 business days) and they will be held in an escrow account. Upon closing, these funds will go towards what you owe at closing.
2️⃣ Inspection - ($500-$1500) You don’t want to spend hundreds of thousands of dollars only to find out you bought a lemon 🍋 We suggest: Home Inspection, Termite inspection, HVAC Inspection, Roof Inspection, and if an older home a Cast Iron inspection and if on the water a Seawall Inspection. Some people are waiving inspections (not suggested)! So the shorter the inspection period the better.
3️⃣ Appraisal - ($500-700) This is how the bank/lender determines if the house is valued at the purchase price amount. The lender isn’t going to finance more than a house is worth so if you’re feeling froggy 🐸 and want to jump well over asking price to win the deal, make sure you have some extra coins to cover an appraisal gap. Example: home is under contract at $500k but appraises at $485k, the appraisal gap is $15k and you would need to add that to your down payment amount. Many winning buyers are waiving the appraisal contingency or guaranteeing a dollar amount over a low appraisal and they provide a proof of funds statement to the Seller!
4️⃣ Closing Costs and Prepaids - (3%-6% of the purchase price). These are the fees that are associated with your home purchase. These include lender fees, title and escrow fees, taxes, prepaid homeowners insurance of one full year plus 2 months of payments to be held in an escrow account with your lender.
5️⃣ Down Payment - This amount depends on the type of loan that you have. 3.5%-FHA loans, $3%-$20% Conventional loans. (Condos/Investments/Second homes are typically 20%+)
Call me TODAY to discuss!
Victoria Gordo
Keller Williams Realty Professionals
☎️ 954-558-5896
Borrowed from the amazing, Heather Edwards - The Edwards Group
