Buying or Selling a Home/home buying costs

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Expert: - 2/8/2012


Question
Hello-
I just had a question about the costs of upgrading to a new house when you outgrow your current one.  We have been in our house just about a year, but feel it may be too small soon (more kids coming) and we may need to get a bigger one is a few years.  We bought it for $200,000 and put $40,000 down.  I am just wondering about estimated cost if we were to get a new house after such a short time.  Say we found another house for about the same price or slightly higher.  Would the estimated realtor fees of, say $10,000 (5% of the purchase price) and the estimated $4000 closing costs on the new house have to be paid out of pocket, or would they be part of the new loan that we get?  Does having more equity in the house make  the costs of getting a new home lower?  We don’t have a lot of money so just trying to figure out how expensive it will be.  Thanks for your help!

Answer
Thank you for your question, I will try and answer for you.

First the REALTORS fee will be paid by the seller of the other home, ie the new home if it is listed with a broker. If home is not listed you may or may not have a buyers agent agreement, if you do you will be responsible for agents commission. As for the closing cost, it depends, most time this can be negotiated into the purchase price, if not it will be out of pocket.

My suggestion is have a REALTOR look at your home and decide if now is the time to sell. Have them do a market study. Also have them prepare you the total cost for doing business with them, ie the bottom line...Total cost including commission, taxes, excise stamps, pay off deed of trust, taxes, etc.. (what is this going to cost me).

Next I would look for a home that is listed for sale with a broker.Make sure the commission is being paid by seller. If you hire a buyers agent, read agreement CAREFULLY.

Most times the next home will cost a lot more than the last home.

As for equity, it just means you either paid more into home or the market has gottoen beter in  your area. Few people have equity, in their home today , with the downturn..

Your REALTOR should be able to give you exact numbers for all,including the current market numbers, if they cannot give you this, consider finding someone who can. In my practice, I do this with every customer,it is very important to know where you stand in todays market. Be carefull. Good luck.

Marvin

Buying or Selling a Home

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Marvin G. Bobbitt, III

Expertise

Can answer questions about Real Estate in North Carolina. Professional Real Estate Broker,REALTOR Residential Real Estate,Professional Advising,Commercial Real Estate, Estates, Issues regarding real estate and the County Tax system,Bank owned properties, REO/Foreclosures and Investment properties,New homes & re-sale home sales,Management of Investment properties,1031 tax deferred exchanges, Profit enhancement within investments,Investment property advisor,North Carolina agency and required forms and disclosure.

Experience

Have 20+ years Professional experience.Experianced in property estates and real estate transactions primarly in the Durham,RTP,North Carolina area.Residential Real Estate, Professional Advising,Commercial Real Estate, Estates, My experience covers a vast range of real estate services.Due to my personal training by Frank Ward for over 20+ years everyday.In residential,commercial,sales and leases, I have had the opportunity to work and learn with some of the best in the business. Estates have become a specialty to me, including the personal property side of things and how to handle things and what to do with what you got.Hire me and forget about it..

Organizations
Active Member of the Durham Association of REALTORS. Past BOD for Durham Regional Association of REALTORS. Active Member of North Carolina Association of REALTORS. Active Member of the National Association of REALTORS. Active Member of Triangle Multiple Listing Service. Past member Durham Jaycees, Durham Sales and Marketing and Durham Rotary Club.

Publications
Durham Herald

Education/Credentials
Graduate; Durham Public Schools Graduate; North Carolina Central University. Appointed; Real Property sale Commissioner/ Durham County N.C Clerk Of Superior Court 2010, Honorable Archie L.Smith, III, Durham County NC. Completion of the following North Carolina Real Estate Courses. North Carolina Real Estate School Fundamentals. North Carolina Real Estate Broker Classes. Completes Continuing Education classes annually as directed by the State of North Carolina Real Estate Commission. Completion of the following North Carolina Appraisal Courses. R-1 Real Estate Appraisal. R-2 Valuation & Principles & Procedures. R-3 Applied Residential Property Valuation. G-1 Income Property Appraisal & Valuation. Completion of Notary Public Classes for the State Of North Carolina. Active Notary Public for Durham City/County, North Carolina. Active until; 06/16/2015

Awards and Honors
20+ YEARS EVERYDAY PERSONAL TRAINING BY;FRANK WARD. Appointed; Real Property sale Commissioner/ Durham County N.C Clerk Of Superior Court 2010, Honorable Archie L.Smith, III, Durham County NC.

Past/Present Clients
Given upon request

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