The simple answer is this: if you can't afford a real estate agent, then you really can't afford home ownership.
Let's put aside for a moment that brokerage fees are paid by the seller; and that in order to get financing, the lender will require that you pay for an appraiser.
I think that homeowners need to have six month's of living expenses readily available in savings or other liquid accounts. Some people think three. Whatever.
At the very least, you need to have enough money in savings to handle a big car repair, like an engine or transmission. So if money is this tight, then maybe you need to continue renting.
All the best,
As far as the appraiser... when you get a loan, your lender IS going to require an application fee which will cover your appraiser. Perhaps the best first step, for you, since money appears to be so tight, is to contact a lender, and see if you can even afford to purchase a home at this point.
They will run your numbers and give you a pre-qualification, showing what you can and cannot afford, and that service is usually a no-charge.
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You have got too much on your plate and you will not be able to handle any more.
If a couple hundred dollars makes that much difference to you,
You should wait until you can do it comfortably.
Good luck and may God bless
TB - although costs are a consideration in every investment of equal importance is results.
A real estate professional can provide comprehensive information on your investment consideration. Nearly all agents work on a contingency basis. As an investor, (from your other questions that appears to be your interest) you should consider partnering with a real estate pro until you get the results you want on a few deal, THEN YOU CAN SOLO!
Be advised, there is no way you can receive actionable, comprehensive guidance on a forum such as this. There are too many variables and way to much to consider regarding your local market AND your situation. It will cost you nothing but time and TRUST to pick up the phone and call a local agent. That sounds affordable.
For the appraisal fee, that is going to be around $445 for an FHA or USDA loan. That is a fee that must be paid upfront for before the lender can order the appraisal. If you cannot afford the appraisal fee, then you are really not in a position right now to purchase a home. You will also need earnest money of $500-1,500 to place a property under contract. A home inspection fee would probably arund at least $250- 350 or so.
An FHA mortgage will require a 3.5% down payment , whie USDA is 100% financing in rural areas.
Rodney Mason, NMLS #151088
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825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
Apply Online at http://www.rodneymason.com
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I would suggest you talk to a real estate agent right away. Have a frank disucssion about down payment and closing costs and then decide if you are really ready to purchase a home today. You may need to wait just a little while longer to give yourself enough time to get all your ducks in a row so that the process goes smoothly if and when you ARE prepared.
If you are a buyer or a seller, either way you cannot afford to not use a realtor. However, being a buyer allows you to benefit greatly when working with a realtor who ultimately is paid at the closing table from the seller's funds. If you go thru the real estate process which covers more than 180 steps alone, you may miss out on something small that in the end grows to be a monster. I recommend you find a great agent to work with when buying property here or overseas. If you need help in your international endeavors, I am the one to work with. If you need help with your local real estate needs, I am one to work with. Let me know.
Gusty is correct. A buyer's agentâ€™s commission is paid by the seller and part of the price. Seller's will not reduce their price if you are buying without an agent, so you will be paying for the services if you use them or not.
If you did have to pay, chances are you couldn't afford not to use a quality agent. Notice, I did not say any agent, but a quality agent. Spend some time, so some homework and find a good, experienced, knowledgeable and patient agent who likes to work with first time buyers.
First time buyers need an agent more than most buyers. There is so much to learn, know, prepare for and look out for. One mistake will cost you far more than anything you might have to pay, if you had to pay.
Go find a great agent!