4 Potential Surprises When Buying a Home

No. 1: Low inventory means you have to act fast …

In many markets right now inventories are tight, meaning there are too few homes on the market for potential homebuyers. Homes in good condition that are priced appropriately sell fast. The competitive market means buyers may find a home and make a serious offer in just a few days (sometimes 24 hours!). In extremely low inventory markets buyers may end up in bidding wars, paying more than the home’s asking price.

No. 2: … But closing takes longer than you think

The average home sale takes approximately 50 days from the moment your offer is accepted to the time you move in, but this is contingent on a variety of things. As the days tick by during this comprehensive process of inspections and appraisals, you may find yourself impatient to move in.

The good news? Advanced technology has helped streamline the exchange of a vast amount of paperwork.

While you anxiously await the keys to your new place, you can occupy yourself by preparing your things for the move.

No. 3: Home inspections leave nothing uncovered

For the benefit and protection of a new buyer, most home inspectors conduct a very thorough inspection of your new home, leaving a detailed list of recommended repairs and improvements. Remember, not every item on the list may need to be repaired for the home to be safe or for you to take possession.

No. 4: Closing costs may leave you asking: “I owe WHAT?”

Just when you think you know the bottom line, some additional closing costs can sneak up on you. Things like loan origination fees, prepaid property taxes, title insurance and more can add up at the end of the process. In fact, on average, closing costs can range from 2% to 5% of your home’s purchase price.

Now that you know, you can ask for more details and factor this in when you prepare to buy.