Thursday, 18 August 2016
Imagine the clarity and convenience if every real estate transaction had a sticker price, right on the listing, itemizing every closing cost to the penny.
But there are so many variables involved, such as the kind of loan, down payment amount, and negotiated price, that such a scenario is impossible.
The biggest surprise for a first-time home buyer may be a tax bill if you live in a state that re-assesses the property when it's sold. Natalie Riggs, a real estate professional in Southern California, uses the example of Los Angeles County property tax, which is 1.25 percent. If a home previously that valued at $100,000 30 years prior sells for $500,000, the new owners will owe tax for the $400,000 difference in addition to the tax based on the $500,000 home. "This is a bill that knocks the socks off of first-time homebuyers, but I always let my clients know to expect this supplemental bill the first year," Riggs says. Other costs you might not have anticipated (and each jurisdiction has its own set of regulations, taxes, and costs) when closing a home deal could include:
All fees should be itemized and clarified by your lender, and if you have any questions about them, ask — and even try to negotiate. It's important that you understand what you are paying for before you sign any paperwork.
The content provided is for informational purposes only. Neither BBVA Compass, nor any of its affiliates, is providing legal, tax, or investment advice. You should consult your legal, tax, or financial advisor about your personal situation. Opinions expressed are those of the author(s) and do not necessarily represent the opinions of BBVA Compass or any of its affiliates.
Links to third party sites are provided for your convenience and do not constitute an endorsement. BBVA Compass does not provide, is not responsible for, and does not guarantee the products, services or overall content available at third party sites. These sites may not have the same privacy, security or accessibility standards.
Whether you're planning to sell your home or just want to enjoy it more, these are the top five inexpensive ways to freshen things up.
A home equity loan can be a smart, affordable way to borrow. Learn about the benefits, requirements, options, risks, and how much you can borrow.