The Real Estate Agents at Redfin combine cutting-edge technology with local knowledge to help you navigate the Fairfax County real estate market. Their local expertise helps buyers and sellers win in the competitive marketplace. Redfin’s agents will share market insights that will make the process less stressful.
What Costs Are Associated with Home Ownership
When you buy a house, you may be surprised to learn that you’ll have many additional expenses to pay. The cost of utilities, homeowners insurance, and property taxes can all be high, and you’ll also have to deal with the upkeep of a yard. These hidden costs can add up to a huge burden on your budget and can make the process of home ownership a difficult one.
Of the costs associated with home ownership, the most common is the mortgage, which accounts for 30 percent of the total. The largest share of this cost goes to investors of mortgage-backed securities, while the second largest portion goes to the mortgage originator. A smaller amount goes toward other costs, such as guaranty fees, which are government-sponsored enterprises that charge borrowers to guarantee their mortgages. Finally, homeowners may have to pay for private mortgage insurance, which accounts for a small percentage of the overall cost of home ownership.
Homeownership is a great investment for the long run, but there are also some hidden costs to consider. Homeowners are often faced with maintenance costs that may not be in their budget, and homeowners must consider these expenses before purchasing a home. In some cases, homeowners may need to take out a loan to pay these expenses. In addition, homeowners often incur transfer fees and property taxes.
Who Typically Pays for Realtor Fees?
A property advisor’s fee is usually paid by the seller of a home. This fee is based on the market conditions of the local area. If the real estate market Fairfax is good for sellers, then the realtor may charge a lower commission rate. However, if the market is bad for sellers, then the realtor might charge a higher commission rate.
In Virginia, the seller of a home pays the realtor’s commission out of the sale proceeds. Unlike in many states, the seller of a home pays the agent’s commission before the house is sold. The seller’s commission is roughly 2.56% of the selling price of the home. This makes the total commission amount for a Virginia property adviser around 5.22%. However, the commission rate that a seller pays the realtor depends on the area and the type of transaction. For example, a $500,000 home would require a $30,000 realtor commission. While this may seem like a lot, it is just one part of the transaction.
HomeLight offers a service wherein users can search multiple agents’ databases and see who costs the least. In addition, the platform offers a referral fee of up to 25% for participating agents.
Should I get pre-approved before looking at homes?
Getting pre-approved for a mortgage before you start looking at homes is an important step for first-time home buyers. Pre-approval will give you an idea of how much you can spend on a home, which will make your search more effective. Additionally, you will know how much you can afford to pay for a down payment.
Many home sellers don’t want offers from buyers who aren’t pre-approved. It’s upsetting to make an offer only to find out later that the house isn’t available. Pre-approval will save you the heartache and frustration of trying to find a different home.
Getting pre-approved may take time, but it will be worth the wait. Pre-approval will also tell you what interest rate you’ll be offered on your loan. Some lenders will even allow you to lock in your interest rate before looking at homes.
What auction terms should I know?
A pre-sale appraisal can help you set a more accurate starting point for your price. Appraisals cost around $300-365 in Virginia, but they can help you walk away with thousands more when you sell your home. You can hire a Fairfax County VA property advisor to help you get started.
Using a low-commission realtor to sell your home is a great way to save money. You can save up to 6% on agent commission fees. A typical realtor’s commission in Virginia is 4.62% to 5.83%. However, if your home is under $350,000, you can expect to pay as little as $3,000 for a full-service agent.