I’m a Real Estate Agent: Don’t Buy a House If You Need To Pay These 7 Costs – Yahoo Finance

Navigating the homebuying process is no small feat, especially when hidden costs can easily throw you off budget. Broker fees, high loan expenses and unexpected maintenance costs are just a few of the financial traps you could encounter.
See: 5 Expensive Home Renovations That You’ll Probably Regret
Learn: 3 Things You Must Do When Your Savings Reach $50,000
Knowledge is your best defense against these hidden costs. By recognizing what fees you should never pay, you can make smarter financial decisions.
“A cost that all homebuyers should avoid paying is the broker fee, which can range anywhere from $199 up to as high as $1,000,” said Jason Gelios, a senior real estate specialist.
“You typically see real estate agents trying to justify this charge by stating their broker has to charge this fee to keep the lights on. In reality, it’s a junk fee and can almost always be waived,” he continued.
“Homebuyers can locate this fee by simply looking at their buyers agency agreement. Home buyers should never pay a broker fee to a real estate agent. If the agent is unwilling to budge on this fee, then that’s an indicator it’s time to locate another agent.”
Bethany Stalder, a realtor with Fidelis Property Group at Keller Williams, said, “When applying for a loan, be mindful of any fees the lender may charge, such as origination, application, or broker fees. Compare at least three lenders to find the best deal.”
In addition to that advice, Stalder also said, “lenders may have to charge points in order to secure the interest rate that they’re quoting you — a point is equal to 1% of the loan amount and gets added to your closing costs in order for you to obtain a certain interest rate. This is very common, and yet you need to understand this cost in order to do a true comparison between lenders, so be sure to talk with your loan officer about it.”
Could You Afford a Vacation Home in Europe? Check Out the Prices in These 8 Cities
“Don’t overlook potential maintenance and repair costs,” added Stalder. “Have a thorough home inspection to uncover any hidden issues that could create surprise costs once you move in.”
It can be tempting to buy more house than you need or excessive luxury features that stretch your budget.
Stalder explained, “We often see this happen with condos — buyers fall in love with a home in a particular condo community, but that community may come with a high monthly maintenance fee that supports amenities like a pool or a clubhouse. But if you won’t use these amenities, you’re elevating your monthly payment without really getting additional value. Stick to your budget and prioritize what’s essential for your lifestyle.”
“The single most important cost I continue to tell people to avoid is the cost of the house itself,” said Cody Smith, a realtor with RE/MAX.
“When getting pre-approved, it’s important to discuss all options and costs with your lender and making sure that your mortgage payments and all associated housing costs (taxes, insurance, etc.) are not going to eat up all of your income and leave you what we call house-poor,” Smith said.
“These are the people who are most at risk of defaulting because they’re so susceptible to missing not being able to afford their mortgage if something changes (increased rates, utility costs rise, loss of income).”
Smith also warns that higher than average interest rates can be crippling on your purchase.
“There are often alternative mortgage options through secondary or B-side lenders, or perhaps private lenders, which can result in getting a higher pre-approved price,” Smith said.
“These usually result in some significant cost increase, though, like a higher-than-usual down payment or higher interest rate. These can result in paying much more over time, or emptying out any safety net you may have saved up.”
Homeowner’s Association (HOA) fees should always be considered before purchasing because, as Smith said, they “can vary greatly depending on the property, so it’s important for your agent to know what an average cost in the area is.”
Pay attention to what the fees cover and know that an increase in the fees may be due to more services being provided. “Either way,” Smith continued, “these costs can sometimes increase your monthly homeowner costs by a huge percentage.”
More From GOBankingRates
Suze Orman: 3 Things You Must Do If You Receive an Inheritance
How To Get Free Money: 13 Proven Ways
3 Things You Must Do When Your Savings Reach $50,000
10 Smartest Ways to Make Your Money Work for You, According to Experts
This article originally appeared on GOBankingRates.com: I’m a Real Estate Agent: Don’t Buy a House If You Need To Pay These 7 Costs
He sticks to these four indicators regardless of his strategy. His versatile approach has allowed him to remain profitable in different markets.
The $7.6 trillion that is coming due in the coming year represents 31% of the outstanding total, according to Apollo's chief economist.
Warren Buffett was worth $500 million when he sat down with for his first-ever national TV interview with PBS in 1985.
Bull market or bear market? Or a trend-less market as seen for weeks until news late last month that political leaders on both sides of the U.S. chambers of Congress reached a deal to raise the debt ceiling? Regardless of what stage of the market cycle we're in, some folks never tire of searching for cheap stocks to buy.
While retirees may be chagrined to discover that taxes don’t end when they leave the workforce, an unseen threat looms behind the U.S. tax code. The Social Security tax torpedo is as destructive as it sounds, blowing up the budgets of unsuspecting retired folks eagerly awaiting their first Social Security check. Having a clear understanding […] The post How to Avoid the Social Security Tax Torpedo appeared first on SmartReads by SmartAsset.
I’m 77 years old and I requested my 401(k) fund administrator to prepare my RMD. I was told I do not have to withdraw my money if I am still employed. Please confirm if this in fact an IRS rule or that of the fund management company? -Bea That is correct, Bea. If you are […] The post Ask an Advisor: I’m 77 and Still Working. Is it True That I Don’t Have to Take RMDs? appeared first on SmartReads by SmartAsset.
Top strategists and money managers share investment ideas and themes to consider for 2024.
Strong investor sentiment and buoyant equity valuations will carry the benchmark index to a fresh high next year, RBC said.
Consumers are shifting away from store-branded credit cards, which have been lucrative for retailers.
Roth IRAs offer a tax-advantaged way to save for retirement, and they’re a popular choice among investors. However, understanding how Roth IRA contributions are taxed is crucial for making informed financial decisions. Let’s break down the marginal tax rate, compare Roth IRAs to traditional IRAs, delve into the taxation of Roth IRA contributions and examine […] The post How Roth IRA Contributions Are Taxed appeared first on SmartReads by SmartAsset.
(Bloomberg) — The selloff that’s ripped through green stocks looks set to continue into 2024, bringing a fourth consecutive year of losses, according to Bloomberg’s latest Markets Live Pulse survey.Most Read from BloombergRussia Downs Drones Over Moscow in Ukrainian Retaliatory StrikeChina Says Multiple Pathogens Are Behind Spike in Respiratory IllnessesSodium in Batteries: Shift May Herald Another ShakeupIsrael, Hamas Look to Extend Truce After More Hostages Are FreedMarkets Cheer as Milei Dro
While taxes are inevitable for most Americans, the government doesn't require those with sufficiently low incomes to file. However, choosing not to file usually means forfeiting profitable tax breaks and other financial advantages. Plus, you'll be penalized if it turns … Continue reading → The post How Much Do You Have to Make to File Taxes? appeared first on SmartAsset Blog.
The latest reading of the Fed's preferred inflation measure will serve as the main highlight for investors in the week ahead.
Google leads this watchlist of five S&P 500 stocks near buy points as the market rally has investors seeing green.
I'm afraid of the stock market. With my first investment, I lost 60% of my money. So I'm strictly into bonds. With interest rates low, what's your advice? Should I stay or try something else? -Jerold It's reasonable to be … Continue reading → The post Ask an Advisor: ‘I'm Strictly Into Bonds' and Afraid of the Stock Market. Is This a Strategy I Should Stick With? appeared first on SmartAsset Blog.
(Bloomberg) — Cash-strapped Chinese borrowers are losing another funding avenue, as default jitters rock a market that relies on quasi guarantees from banks for repayment. Most Read from BloombergRussia Downs Drones Over Moscow in Ukrainian Retaliatory StrikeChina Says Multiple Pathogens Are Behind Spike in Respiratory IllnessesSodium in Batteries: Shift May Herald Another ShakeupIsrael, Hamas Look to Extend Truce After More Hostages Are FreedMarkets Cheer as Milei Drops Dollarization for Macri
The Swiss National Bank sold most of its investment in AMC stock, and cut back in Apple, Nvidia, and Tesla investments in the third quarter.
The classic 60-40 portfolio was never meant to be the end-all, be-all portfolio—it’s just “a good starting place," according to Vanguard's Todd Schlanger.
The collapse of Southland Royalty, a private equity-backed oil-and-gas explorer that owned fields in Wyoming’s Green River basin and New Mexico’s San Juan Basin, in early 2020, was unremarkable in many ways.
A happy holiday shopping season might not end up being an especially cheery time for lenders. Card loans are still growing, on average rising 1.6% in October over September across five big U.S. card lenders, versus a seasonally typical 0.7% increase, according to tracking of the latest monthly data by analysts at Goldman Sachs The trend suggests that consumers still are willing and able to use their cards, portending well for retailers. The average rate of 30-day-plus delinquency across the five big lenders jumped 0.16 percentage point from September to October, above the typical seasonal jump of 0.06 point, according to Goldman’s tracking.

source