3 Unexpected Costs Your Buyers Need to Know About
As a Realtor, you are always thinking about the best options for your clients. You have their best interest in mind at all times and want to make sure your buyers are prepared and their expectations are met.
A common challenge that Realtors can encounter is when their client’s are blindsided by unexpected costs.
The buyers may have thought they were getting a loan with a low interest rate and low down-payment requirements and little out of pocket expenses, and are then met with disappointment.
Help prepare your clients by informing them of these possible expenses to avoid misunderstandings, frustration and the entire transaction fall apart.
1. Moving Fees
First-time homebuyers can often forget about the costs of moving due to the excitement of purchasing a home and all of the paperwork they have never seen before.
Making sure that your buyers have set aside money to move their belongings will help them avoid stress and be able to enjoy the homebuying process even more.
Buying a home is costly and is not a linear process. There are ups and downs, repairs that will pop up during inspections, further negotiations and cost changes. Keeping a set amount aside that is solely for the cost of moving will be helpful in the long run and your clients will thank you for preparing them with realistic expectations.
2. Closing Costs and Earnest Money
When buyers have qualified for certain loans like the VA loan or an FHA loan, they may have a misleading understanding that they will not have to put ANY money upfront.
It’s crucial for your clients to be aware of closing costs and the earnest money deposit and understand why these are important.
Asking the seller to pay for all the closing costs and accept an offer that does not have any skin in the game (aka, the earnest money deposit) will most likely not end in the buyer’s favor.
Without these financial commitments, their offers will not be competitive and you will waste your time as their Realtor. This is a lose-lose situation and we don’t want this for either of you!
3. Home Owner Insurance (HOI)
This one is always a surprise and shock for new buyers. But, think about it! How would they know about this expense unless YOU tell them?
Most first-time homebuyers will calculate their mortgage based upon the cost of the home and won’t blink an eye to the thought of any other costs being added into their monthly payment.
Do not ever assume that your clients know these small details which may seem like common knowledge to you! This is why your buyers need you, you have the expertise and knowledge that they do not have. Remind them of why they need you!
Remind them that buying a house is much like buying a car. You will need insurance and have to account for that extra monthly expense.
eHome America prepares first-time homebuyers with our first-time homebuyers course. We understand the misconceptions that are easily believed and have a passion for setting people up for financial success.
Are you a Realtor with clients who are first-time homebuyers and need some guidance? Direct them to one of our courses to make the entire process easier and shorten the closing time while making it a seamless transaction.