Remodels: What’s Good for Resale and What’s Not

You want to get the best price for your house. You’re willing to do some remodeling – if it will deliver significant ROI. What’s worth the effort? Here are three projects worth considering and three that you can skip.

The kitchen: Kitchens sell homes. If your culinary center is looking worse for the wear, it will likely turn off potential buyers. Updating your kitchen is a good way to increase the value and appeal of your home.

Bathrooms: These areas are also high on buyers’ priority lists, so they should be on yours, too. Focus efforts on the master bath and the powder room.

Curb appeal: First impressions are important and the front of your home is the first thing buyers see. Make efforts that will boost curb appeal, such as repainting the exterior, adding plants, and sprucing up the entry with a new door. These projects can often be completed at low cost but offer high return.

Pools: While you may enjoy countless hours of fun in your pool, this feature probably won’t pay for itself in home value increase. In fact, it could be a turnoff for some buyers.

Wine rooms: While they may sound elegant, wine rooms or other original-design spaces are often too niche. Their limited audience makes them a poor investment choice.

Removals: Just because you never use that fireplace doesn’t mean you should demolish it. Removing features is typically not a good investment. Potential buyers may wish it were still there, and you aren’t likely to recoup the cost of removing the feature.

For expert input on your remodeling efforts, contact our office. We can discuss the projects that could get the best return on investment and what I’ve seen in demand in your market.

5 Buyer Turn-Offs to Avoid This Summer

When you’re in the process of selling a house and moving, you have a lot on your plate. You might be job-searching, researching your next home, and doing everything you can to keep your kitchen spotless for the next showing.

With so much going on, it can be easy to let seasonal maintenance items slide, but this would be a mistake. It’s crucial to care for these items to keep your home in top shape. The exterior provides the first impression of your home, so put forth the effort to boost your curb appeal. Here’s how.

1. Manicure the yard. Keep your landscaping tidy. Sweep walkways, cut the grass and pull weeds. A well-kept yard with attractive flowerbeds and an inviting front porch are appealing to buyers. Dead tree limbs, piles of leaves and overgrown lawns are not. In fact, they can be instant turn-offs.

2. Clean the gutters. This task is easy to forget about, but its neglect can lead to significant issues. Clogged gutters can cause drainage issues that damage your landscaping and your foundation. If buyers see puddling water and piles of debris on the roofline, they won’t get a good impression of your home. Let them know it’s a well-cared-for property by keeping gutters clear.

3. Check for critters. Uninvited guests are a sure turn-off for buyers. Make sure no pests have made your home their own this season. Inspect any attic, basement and crawl spaces. Cover vents with wire mesh and plug any holes or cracks that could allow animals access to your home.

4. Wash the windows. That’s right – this isn’t just a spring-cleaning project. To attract buyers, keep those panes sparkling all summer. Be sure to wipe them down after storms to keep windows looking sharp.

5. Stay in season. You never want to let your home look out of season. It gives the impression that you no longer care about the home and it is not well maintained. Be mindful of what is in the yard, on the deck or sitting on the front porch. Keep furniture, plants and decor in season. Let potential buyers know your property is well cared for by staying on top of these seasonal tasks.

Hey, That’s My Stuff! How to Avoid Mover Scams

4,100 consumers filed moving fraud complaints in 2017, according to the Federal Motor Carrier Safety Administration. How can you avoid negative experiences? Be aware of common scams, and take steps to protect yourself from these fraudulent activities.

Get it in writing: It might be tempting to get a quick quote and schedule your move over the phone. Don’t do it. This is one of the easiest ways to get scammed. Since you have nothing in writing, the movers can easily charge whatever they want once they begin, and they may hold your belongings hostage until you pay an outrageous amount. Always schedule an in-house walk-through to get an accurate quote, and get the agreed-to amount in writing.

Read the fine print: When you sign a contract with a mover, read all the fine print. Make sure you understand the terms of payment before you sign. Unscrupulous movers may include terms that allow them to hijack your belongings after demanding more money. If you’ve signed anything that allows for these practices, the police will be unable to intervene.

Vet the movers: Before you agree to work with a moving company, research its reputation. Contact the Better Business Bureau to check the company’s rating. Ask for recommendations from friends. Read online reviews. Ask movers for proof of registration, proof of insurance and an office address. Take the time to vet the mover, so you know you are working with someone you can trust.

Try a hybrid approach: Consider renting and driving the truck yourself, and hiring movers for loading and unloading only. This will keep your possessions under your control to prevent hijacking scams. (It can also reduce the cost of the move!)

5 Things You Need to Know about Your Future Neighborhood

Are you currently on the home hunt? You probably have a list of needs and wants. Have you included anything about the neighborhood?

In addition to bedrooms, baths, and interior upgrades, it’s a good rule of thumb to ask a few questions about the potential neighborhood you may want to call home. When you’re thinking about buying, here are some questions you can ask to help determine if the neighborhood will be a good fit for you.

1. Is the area well-maintained? Take a walk around the block. Drive through the neighborhood. Are properties well-maintained? Are roads in good condition? The appearance of the lawns, homes, and public spaces can reveal a lot about the area.

2. Are there any rules and regulations you need to be aware of before you commit? Do you mind if your renovations and landscaping are restricted by homeowner association bylaws? Find out if the neighborhood has any rules and regulations, and what they are.

3. What is the reputation of the school district? Even if you don’t have children, the school district’s status can affect property values. Get the scoop on the district’s rankings in academics and financial stability.

4. What’s the crime rate? Oftentimes you can find maps provided by the city that show what crimes occur in the area and how often. The FBI may also have reports available for the area. Do a little research to make sure you’ll feel safe in your new home.

5. What amenities are nearby? For some homebuyers, access to public transportation is important. Others want to live near parks, shops, or restaurants. Find out what amenities the area offers to ensure that you choose a neighborhood that suits your lifestyle.

3 Real Estate Myths Television Has Taught Us

Jim and Suzy Homebuyer just found their dream property for $50K and fixed it up in three weeks.

Stories like this have skewed viewers’ expectations of real estate reality.

Shows about home buying and renovation projects can be fun to watch, but we may not realize that they often don’t depict the realities of buying, selling, and owning a home.

Here are three common myths popularized by today’s TV lineup.

“Three homes will do.”

On TV, a couple looks at three homes and is able to find the property of their dreams. This isn’t how things work in the real world.

The number of homes buyers must look at before finding the right one for them differs in each situation. It’s not uncommon to look at 20 homes. It may even work out that you look at just one (but it’s not likely).

“I can afford that.” 

Shows that depict real estate purchases and renovations rarely reflect prices that are realistic for viewers. We may witness a bargain deal on TV and assume we could get something similar.

The fact is, markets vary greatly. The price of a home or a remodel in the area where the show is filmed may be completely different from what we can expect in our home town – either much higher or much lower.

“This will be a cinch.” 

While some DIY projects can be completed quickly, the amount of time most renovations take is longer than TV would have you believe. Homeowners shouldn’t expect to dive into a basement remodel on Friday and wake up Monday morning with the project behind them. Even if you hire professionals, they may encounter unexpected delays or simply need more time to do the renovation right.

If you’re considering buying, selling, or renovating, the more information you have, the better prepared you can be. Contact me for some professional input – I’m happy to help.

Modern Homes Are Getting Smarter by the Second

Innovative technology is transforming the real estate marketplace. As they design and select homes, today’s buyers are weighing options that were nonexistent for homeowners 20 years ago. Modern houses, enhanced with smart technology, have become more than rooms and walls. They are integrated systems of efficiency, entertainment, and security, designed to cater to a high-tech lifestyle.

These technological advances are adding value to homes in creative ways.

Convenience: Control centers allow owners to manage almost everything in the home remotely. They can turn up the heat, turn on the lights, or turn off the television from around the globe. With remote access, homeowners no longer have to worry about misplaced or stolen keys. They can even grant entry to others while they are away from home.

Security: Wireless technology and video surveillance options have transformed home security. Systems can be added without drilling holes and hiding wires. Cameras and video technology allow personal, remote observation of the home inside and out. In addition to securing their home against crime, owners can check on Fido, confirm a package delivery, or enjoy peace of mind that the kids arrived safely home from school.

Efficiency: Smart technology can provide greater efficiency for utilities, which can provide significant savings over the years. Improved temperature control technology, remote access to thermostats, and better utility sensors can create a highly efficient home.

Linkage: The internet of things has added multiple new features to homes. Homeowners can link smart appliances, security systems, and more to connect every facet of their lives. The connectivity a home offers can boost its value to plugged-in buyers who are seeking modern networking capabilities.

These smart technologies are becoming more affordable and more accessible. It’s likely that more and more buyers can expect to find high-tech options listed among standard home features.

If you’re considering a smart upgrade to your home, reach out to our office so you can get the best information to determine which innovations make the most sense for your market.

Real Estate Secrets: Why (and How) Kitchens Sell Homes

The kitchen is the heart of the home. It’s a bustling center of activity where people gather to cook, eat, socialize, and entertain.

As the central hub, the kitchen is one of the most important rooms of the home. This space will immediately attract buyers or turn them off. It’s much easier to look passed a small bedroom or an outdated powder room than to get over an undesirable kitchen. The kitchen must be designed to meet the needs of their lifestyle. If it’s not a good match, the buyer will likely eliminate the home as an option.

To prevent this from happening, homeowners can make strategic efforts that will improve their property’s culinary appeal.

Refurbish rather than replace: Cabinetry is a significant factor in a kitchen’s appeal. Since replacing cabinets is an expensive endeavor, many homeowners are reluctant to take on this project. Fortunately, other options won’t break the budget. Consider repainting the cabinetry or replacing only the doors. New cabinet hardware can also create a brand-new look.

Invest in appliances: Modern, matching appliances offer immense appeal. They look sharp, offer convenient features, and typically provide high efficiency to reduce utility bills.

Make it sparkle: Cluttered countertops have never helped sell a home. Buyers want to see the kitchen, not the mess. Keep counters clear and clean and ensure the entire space shines.

Consider the market: When considering kitchen improvements, homeowners should always consult with a trusted real estate agent to ensure upgrades are in alignment with their neighborhood, the target buyer, and current trends. Reach out with your questions. We are happy to help.

Negotiation: There’s More to it Than You Think!

When you think of real estate negotiations, what comes to mind? For most buyers and sellers, price tops the list. While this is certainly an important part of any real estate deal, did you know there are at least six others areas of potential negotiation?

Closing costs: In addition to the price of the home, buyers must pay closing costs that cover lender fees and other charges. Buyers may ask sellers to help pay for these costs with a flat dollar amount or a percentage of the fees.

Closing date: Do you need to close on a home quickly? Perhaps you need a little more time to search for your next home. There are also different advantages to closing at the beginning and end of the month.

Personal property: What will be included with the four walls and roof? Negotiations will be worked out on whether the seller includes the washer and dryer, kitchen appliances, and even items such as living room furniture or that pool table in the basement.

Contingencies: Many real estate contracts are contingent on financing or other home sales. The buyer may need to complete their lender requirements by a certain date or complete their current home sale before the contract is in full force. These details must be worked out and agreed to up front.

Home repairs: Most contracts include a stipulation that the buyers can complete a home inspection. Once the buyers receive this report, they can ask the sellers to fix items that were found to be in disrepair. Each of these items must be negotiated.

Home warranty: This can be provided as an incentive to buyers to offer peace of mind. It can be particularly appealing for older homes. It typically provides coverage for the home’s HVAC system, appliances, and other major items in the event that they need repair soon after the purchase.

Does this sound like a lot to negotiate? It is. Fortunately, real estate agents are expert negotiators and can handle all of these points for you! Your agent will identify your top needs and work hard to get you the best deal.

Why Flexibility Is the Watchword for Today’s Homes

Let’s roll back the clock to around 1900. If we take a tour of the average home, we’ll find layouts of about 900 square feet. Fast forward to the year 2000, and we’ll find that number has more than doubled, to just over 2,000 square feet.

However, the trend toward “bigger is better” has not carried into 2019. The past few years have seen a slow decrease in median home size. By the end of 2017, it was just over 2,400 square feet.

While this shrinking home size may be significant, what’s even more noteworthy is the change in style. Gone are the days of formal living and dining rooms. The trends for extravagant game rooms, wine cellars and media rooms also seem to have faded into the history books.

Today’s homeowners are seeking something different. They want rooms that serve multiple purposes and homes that serve multiple generations.

This latest concept offers a home within a home. A common layout includes a great room that serves as both living and dining rooms and a suite that adjoins to the main house. This attached one-bedroom living space includes its own kitchen and bathroom and can function as a teen suite, college student’s pad, home office, or in-law apartment.

The idea is that it can be whatever the homeowners need it to be. As parents age or adult children bounce back home, the layout offers suitable living arrangements to accommodate a variety of situations. It creates a space that allows the property to meet homeowner needs, not just for many years but for many generations.

Attention Sellers: What Buyers Want

Today’s television lineup is packed with shows about property ownership. From remodeling to purchasing to flipping homes, HGTV and other similar channels have inundated homeowners with ideas about real estate.

As a result, many buyers now have high expectations as they search for a potential home. They’ve seen the magazine-worthy houses on TV and that’s what they want to find when they view a home. Things should be picture perfect to grab their attention. Fresh paint, new kitchens and bathrooms, neutral décor, and modern conveniences top the lists of many buyers.

It’s important for sellers to keep these standards in mind as they prepare to place their homes on the market. To get that coveted buyer, sellers must give buyers what they want. If they are looking for a picturesque setting, then give them one.

Invest in upgrades for outdated interiors. Allow a professional to stage the home. Take the time to boost curb appeal. Ask a real estate agent for recommendations to decide what changes would make the best investment.

As sellers make these changes, one concept is essential to keep in mind: location. While upgrades can help sell a home, it’s important that sellers not price themselves out of their neighborhood. Remodeling and redecorating should be appropriate for the location.

If a seller builds an addition and updates a kitchen with all the bells and whistles, the home might be beautiful, but also overpriced. The seller may have created a $250,000 home in a $150,000 neighborhood.

Again, it’s important to consult with a local real estate agent who is familiar with the area. He or she can determine what projects should be completed to properly prep the home for the market.

With the right upgrades at the right budget, sellers are more likely to sell the home quickly and get top dollar for their property.

Want to sell your house faster? Do this

To some sellers, it seems perfectly natural to remain in the home when buyers view their property. After all, the seller can point out all the fabulous features and answer any questions the buyers have about the home, right?

Wrong. This is not the time for sellers to put on their hosting hats and welcome guests into the home. If buyers are coming by to see the property, sellers should vacate the premises. Why?

When sellers are around, buyers feel less comfortable. They are likely to feel rushed and will spend less time in the home, since their visit feels like an imposition on the sellers.

This is the opposite of what needs to happen to sell a home. Buyers must be made to feel as comfortable as possible. This will encourage them to take their time and truly consider the home for purchase. They will be more likely to notice those very features the sellers were hoping to point out, since they won’t be rushed.

Buyers also typically feel more comfortable asking their real estate agent rather than the owner questions about the property. They may have a concern the agent can address that the buyer would not be willing to bring up in front of the seller.

Sellers can also get more helpful feedback indirectly through the agent. For example, a bad odor in the home may be an issue, but buyers might feel rude bringing this up in front of the seller. If sellers can obtain honest feedback, they can use this to improve future showings and sell the home faster.

Downsizing Prep: Common Heirloom Errors

The kids have all moved out. As you approach retirement, you know downsizing is in your future. It’s time to start considering what that will entail.

Realistically, you won’t have room in your new home for everything that has accumulated over the past two or three decades.

Don’t make the same mistakes many downsizers do by holding on to items that should be purged.

Before it’s time to move, take stock of what is in your home. Have you kept anything for your kids that they really don’t want? Have an open conversation with your children to determine whether what you consider a precious family heirloom would simply be clutter in your child’s home.

Put the following items at the top of the list to discuss. These are three of the most common things parents keep that their kids would prefer never to inherit.

Books: Even if your children love to read, it’s likely they don’t want your old books (and they probably have their own growing collection they will have to purge some day). If you suspect any of your books are valuable, do a search online or contact a book antiquarian. Otherwise, consider donating the books to a library or used book store.

Fine dinnerware: Has your child ever used a cup and saucer for morning coffee? Would he or she use silver flatware? For that matter, have you used any of these dishes in the past year?

Children and grandchildren typically don’t want to store multiple place settings of porcelain dishes. Go ahead and sell them to the consignment shop or to a company that offers replacement pieces for consumers seeking specific patterns.

Paper piles: Do you have shoeboxes of greeting cards, letters, and photos stashed under your bed? Piles of paper are overwhelming and nearly impossible for others to sort through.

Before downsizing, go through these papers and say goodbye. Read through cards once more; then recycle them. Scan photos to create digital files, or frame your favorites to pass along. Then get rid of the rest.

Big-Ticket Items: When’s the Best Time to Buy?

From furniture to refrigerators, big-ticket items are often a major consideration during the home-buying process. For sellers, investing in some upgrades could make their home more attractive than the competition. Buyers settling into a home may be on the hunt for good deals to fill their new space. On either side of the transaction, it’s helpful to know when and what to buy to get the most bang for your buck. Here’s the scoop.

Kitchens sell homes: Sellers, keep this in mind if you’re wondering where to invest your dollars to boost your home’s appeal. If your kitchen features outdated appliances, spend the budget here rather than in the laundry room or guest bedroom. Consult with your real estate agent to determine the best upgrades for your price range and budget.

Seasons offer savings: If you have some flexibility with the timing of your purchase, look for big-ticket items when they are most likely to be on sale. Appliance manufacturers typically introduce new models in the fall, so consumers can often find good deals on previous models at this time. The exception to this trend is refrigerators, which are usually marked down in the spring. To furnish a new home, try to hold off until January or July. These months generally see the most furniture sales.

Discounts are available: As you shop, watch for potential discounts. If a store is selling floor models, you may be able to get a great deal. Many stores also offer competitor price matching. Lastly, look for savings even after you buy. Some retailers offer price adjustments if your item is reduced soon after your purchase.

Five Interior Design Disasters to Avoid

Beauty is in the eye of the beholder, and that saying rings true for how one chooses to decorate one’s home. Therefore, one person’s love of leopard print could be another person’s decorating disaster. If you are looking to sell your home this year, change up or avoid these top five no-nos.

Wall-to-wall carpeting. Having wall-to-wall carpet is the number one no-no. According to Jonathan Scott of the famed Property Brothers, no one is looking to buy a house with carpet – which can hold many of life’s unsavory side effects like dirt, stains, and hair.

Mirrored walls. In theory, this decorating idea should make a small space appear larger. However, according to Scott, the effect can actually make your room look like an “’80s dance hall.” Let the dance hall die and opt for full-length mirrors instead.

Clutter. When it comes to decorating to sell, less is almost always more. Be particularly picky about the foyer, since this provides the initial impression of the interior. Keep shoes, winterwear, bags, and other daily-use items organized and out of sight. Rearrange or remove furniture and décor throughout the home to make each room appear as spacious and inviting as possible.

Loud wallpaper. Although wallpaper can add that pop of color that a room desperately needs, a loud or dizzying pattern can turn off buyers. If you want to add appealing hues, stick with paint.

White on white. Although beautiful, the color white is not realistic when it comes to life’s many mishaps. Realtor.com recommends that homeowners gravitate toward rich shades such as rust browns, black, and forest green.

Could Driverless Cars Drive Real Estate Values?

Imagine a world where humans never have to worry about wasted commute times. Imagine being able to use that time to work, spend quality time with your kids, plan dinner, or catch up on some much-needed z’s.

Sounds magical, doesn’t it? That magic could be coming to a street near you, as driverless cars are poised to become mainstream technology worldwide.

As Tesla, GM, and BMW clamber to get their fleets on the streets, these autonomous cars could have a far-reaching effect on industries other than auto.

When the human is removed from behind the wheel, the potential for error diminishes. Therefore, safety precautions such as auto insurance, parking tickets, speed traps, and law enforcement may no longer be needed.

These vehicles could also have a significant impact on the real estate market. When autonomous cars become the new norm, public transit will no longer be the go-to for those who are unable to drive.

The loss of public transit could have a domino effect on the real estate industry, since cities would no longer be built around transit systems. What was once considered less desirable residential real estate may become more popularbecause of the distance from transit hubs. According to an article in Forbes, these areas could offer a “greater appeal [that] could translate into increasing demand and rising property values.”

The long-reaching impact these cars will have on society is still being mapped, but it should make for an interesting ride.

Increase Property Value by Avoiding These Landscape Blunders

Everyone knows the importance of making a good first impression. It’s no different when it comes to your home’s curb appeal, which refers to your property’s overall appearance from the street.

To make your home’s “frosting” as appealing as possible, you’ll definitely want to think about planting stunning blooms and making sure your landscaping is well manicured and maintained. Implementing a long-term landscaping plan can help increase your property value when it comes time to sell.

When you go to plant, make sure to avoid the below common landscaping mistakes that homeowners make when planting trees and shrubs.

First, avoid planting invasive tree species. Some such species, like bamboo, grow quickly and actually push out native plants, which does tremendous damage to an area’s biodiversity.

Another no-no is planting too much and too close together. When too many trees and plants are crammed together, the greenery doesn’t have enough space to grow bigger, stronger, or healthier. While aesthetically this could look good for the first few years, the plants will eventually mature and fight each other for light and nutrients. So, unless you want a property covered in dead leaves and branches, it’s best to save your coins and plant less.

When planting anything, you’ll want to make sure you’re not too close to home. This, professionals warn, is a nightmare in the making. Trees planted too close to the home will, over time, get woody and grow too close, which will bring bugs and moisture inside. The resulting dampness could actually lead to rot inside your house, and the tree’s big roots could damage your property’s foundation or basement.

When it comes to planting and maintaining your home’s green exterior, do your research and exercise restraint. While trees and shrubs certainly boost your home’s value and curb appeal, some green mistakes could cost you.

What You Need to Know before Becoming a Landlord

Thinking of becoming a landlord? While this can be financially and personally rewarding, you must do your homework before you take the leap.

To help you learn the ropes and avoid any costly missteps, here are some handy tips of the trade.

It cannot be overstated how important it is for landlords to do their pre-closing homework.

During the home inspection, remember to take a thorough look at the property to see what will need to be repaired or replaced.

For example, you might want to change the toilets to low-flow models. You’ll also probably want to invest in essential upgrades to three common areas: water, door locks, and flooring.

Don’t make the rookie mistake of underestimating the costs of fixing and maintaining the property, both before and after a tenant has moved in.

Most landlords account for insurance and taxes, but it’s easy to miss expenses like garbage, gardening, and regular maintenance.

According to Money, you should set aside at least 35 to 45% of your annual rental income to cover these costs. (And when you’re calculating this income, it’s a good rule of thumb to account for only 10 or 11 monthly payments per year.)

When it comes to finding a tenant, don’t be too relaxed. Interview prospective tenants on the phone first to find out if they meet your requirements. Then, it’s important to check your potential tenants’ credit and speak to their references. Confirm the source and amount of their income. It should be at least 2.5 times the annual rent. You should also learn what’s legal in your town. For example, can you ban pets?

Once you’ve found a great tenant, act fast to get the lease signed. From there, never forget that you’re running a business and your tenant is a customer. Treat your customer right, and success is more likely to come your way.

Prepping Your Home for Sale: Get the Most Bang for Your Buck

Every seller wants to maximize his or her profit. Partnering with a real estate agent is a great start. Homeowners can further increase their bottom line with a few simple steps. To get the most out of your house, complete the following before you list.

Hire your own home inspector. If a buyer’s inspector finds issues with your home, you can expect your profit to shrink. Stay one step ahead by hiring your own home inspector to unearth any potential issues.

Invest in repairs. In addition to addressing any trouble the home inspection reveals, it’s a good idea to have cosmetic issues addressed. Prospective buyers notice things like cracked tile, chipped baseboards, or a squeaky floorboard, and this will be reflected in their offer.

Upgrade where it counts. You don’t have to renovate your whole house to turn a healthier profit. Make small, impactful swaps, such as switching out lighting, cabinet hardware, or shower heads for cleaner, more contemporary options.

Add a few new accessories. Fresh flowers and potted plants go a long way in making a room feel inviting. For a cozier living room, drape a cable-knit blanket over the couch. String Edison bulb lights over a patio and put an Adirondack chair on the front porch. These small touches add major warmth.

Treat it like a model home. To sell your house quickly and for the most money, treat it like a house you’ve been hired to stage. Put personal effects into storage, declutter, remove artwork that could be seen as too loud, and make sure the house is absolutely spotless.

Closing Costs: It’s about More Than Your Down Payment

The first step in buying a home is deciding on a budget. How much house can you afford? Within what price range will you shop?

A down payment is, unfortunately, only one part of that budget. To correctly determine the affordability of a home, it’s essential that prospective buyers consider the costs that arise at the time of closing.

Closing costs vary from state to state. There are different kinds of closing costs, too: lender costs, including origination and document preparation fees, and nonlender costs, including appraisal and survey fees. Some of these costs are required in certain states, while others are not. It’s also important to note how the market can impact closing costs. In New York City, for example, home prices are higher, which can result in higher lender fees.

In today’s market, buyers seeking a conventional loan typically need a 20% down payment to receive optimal rates. As buyers plan their purchase, it’s important to factor in closing costs on top of this 20%.

The final total is dependent on the location of the property. Here’s a look at how approximated closing costs add up in a handful of cities across the country, assuming a loan amount of $200,000. Consult with your real estate agent about closing costs in your area – he or she knows the local market best.

    • Denver, Colorado: $1,980
    • New York, New York: $6,843
    • Minneapolis, Minnesota: $2,417
    • Portland, Oregon: $2,122
    • Los Angeles, California: $2,197
    • Birmingham, Alabama: $2,112
    • Anchorage, Alaska: $2,138

Closing Costs: It’s about More Than Your Down Payment

The first step in buying a home is deciding on a budget. How much house can you afford? Within what price range will you shop?

A down payment is, unfortunately, only one part of that budget. To correctly determine the affordability of a home, it’s essential that prospective buyers consider the costs that arise at the time of closing.

Closing costs vary from state to state. There are different kinds of closing costs, too: lender costs, including origination and document preparation fees, and nonlender costs, including appraisal and survey fees. Some of these costs are required in certain states, while others are not. It’s also important to note how the market can impact closing costs. In New York City, for example, home prices are higher, which can result in higher lender fees.

In today’s market, buyers seeking a conventional loan typically need a 20% down payment to receive optimal rates. As buyers plan their purchase, it’s important to factor in closing costs on top of this 20%.

The final total is dependent on the location of the property. Here’s a look at how approximated closing costs add up in a handful of cities across the country, assuming a loan amount of $200,000. Consult with your real estate agent about closing costs in your area – he or she knows the local market best.

    • Denver, Colorado: $1,980
  • New York, New York: $6,843
  • Minneapolis, Minnesota: $2,417
  • Portland, Oregon: $2,122
  • Los Angeles, California: $2,197
  • Birmingham, Alabama: $2,112
  • Anchorage, Alaska: $2,138