Summary
The article explains the many costs involved in buying and selling a home. It uses a $400,000 home as an example to break down expenses like down payments, closing costs, and ongoing maintenance.
Key Facts
- A home’s listing price is just the starting point; other costs add up quickly.
- Down payments for a $400,000 home generally range from $12,000 to $80,000 depending on the loan type.
- Buyers usually pay 1%-3% of a home's price as earnest money to show serious interest.
- Home inspections cost around $200 to $500, with extra costs for specialized inspections.
- Appraisal fees for a home typically range from $300 to $500.
- Closing costs can be 2%-6% of the home's price, adding $8,000-$24,000 in costs.
- Monthly mortgage payments also include taxes and insurance, referred to as PITI.
- Property taxes vary by state, averaging 1.5% of the home’s value, or $6,000 annually for a $400,000 home.
