Although the process can seem very easy to explain, it can become somewhat confusing and can also be very frustrating as you actually begin to go through certain phases, especially inspections.
Once you have talked to a Realtor or a Loan Officer and found out around what price range and what areas you are interested in. Your Realtor should be able to email you property lists with homes that match the criteria you have set forth. Then you will begin the hunt.
Once the home is found your Realtor will write your offer and help you negotiate. When negotiating there are a few things you are negotiating
- Sales Price
- Who pays for survery and title policy
- Home Inspection and Option Period
- Home Warranty
- Closing Cost
Sales price is probably pretty self explanatory. As far as Survey and Title Policy, typically title policy is paid for by seller, except for many times in the case of new construction. If the seller does not have an existing survey than ultimately this item is up for negotiations
Buyers have the option to have 7 to 10 days in order to inspect a home and do a very necessary home inspection. Home Inspections usually costs between $250 and $400 and are a must, especially on older homes.
Buyers can also ask the sellers to pay many different types of closing costs on their behalf.
Once all parties have reached agreements on all of the above information the option period. The buyer will have to deposit earnest money ($500-$1000). This will be applied to the final amount you have to bring to the table. At this point the option period will start and the buyer has to get the inspections completed.
So How Much Can I Expect to Spend?
As of now the typical FHA downpayment requirement is 3.5% and 5% for conventional loans. Also buyers incur the closing costs which can be an additional 4 to 6% of the sales price.
As part of the contract negotiations the buyer can negotiate to have the buyer pay up to 6% of closing costs on their behalf. So ultimately if you offered $100,000 for a home and asked the buyer to pay your closing costs, they would pay $6000 on your behalf and ultimately would be selling the property to you for $94,000. So on this transaction you would only need the 3.5% which would come out to $3500 to close.
So if you are thoroughly confused please call Avery Properties/Avery Realty Group today and have me explain it in person and I promise I can make it make sense. Its my job 
