Closing cost & Price in Chesterbrook, PA

Asked by Homeforus, Tredyffrin, PA Tue Jan 18, 2011

I plan to buy a property in Chesterbrook, PA and in the range of $225K to $275K. Plan to put 20% down. I need to know what closing cost am I looking at. I am interested in having at least 1700 sq, ft. Also will like to know what you do you actual pay. I mean is it the asking price you see on listing or is it negotiated. What is the trend of final price. Is it 10% of asking price. What should I quote for the property I liked. Asking price OR 20% less of the asking asking price. I am a 1st time home buyer. Any tips!

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9
Nick & Trudy…, Agent, Devon, PA
Tue Feb 15, 2011
Some great answers below. Whilst you may be considering putting 20% down you may also want to consider using an FHA mortgage that allows you to put less down and keep a larger reserve for repairs and emergencies. Finding a good agent and mortgage provider who can help you understand all the pros and cons is a good first step.
0 votes
Keith Landis, Mortgage Broker Or Lender, Venetia, PA
Tue Jan 18, 2011
Homeforus,
A good idea is to get pre-approved with a mortgage lender. This way you will know exactly how much you qualify for and what sales price range you can look at to meet your target monthly payment.
Keith Landis
Flagship Mortgage Corporation
Phone 877 334 6094
0 votes
Linda Burgwin, Agent, Devon, PA
Tue Jan 18, 2011
First transfer tax varies by township. Transfer tax in Tredyffrin is 1.25% to each side.For examle Let's look 401 Danor Court as an example If you purchased for $244,900 in Chesterbrook, put 20% down ( $48,980) and get a 4.75% interest rate. A 6% seller assist equals $14,400. The total estmated funds to close would be $44,702.22. The 6% seller assist covers a lot of closing cost. The monthly including principle, taxes, interest, condo fees would equal $1,424.92. Call insurance agent for monthly quote for insurance. Estimate $100 a month would bring you monthly payment to $1,524.92.
A $300,000 purchase with taxes ovedr $3,00 and condo fee over $200 would put you over your goal of under $1,600 a month for everything. Everything changes on every property. There are a number of variables. Work with a Buyers Agent and you will get the information you need to purcahse a property. Call a mortgage agent to understand the best way to finance the property
0 votes
Jennifer Day…, Agent, Phoenixville, PA
Tue Jan 18, 2011
Please do keep coming with your responses. So far thanks to all! Here is one more clarification that I will like to resolve. If I am limiting myself with $1600 monthly expense (including HOA fees, mortgage & anything else related) then what is the maximum home price am I targeting for. I mean can I look for a 300K house.

It's going to depend on the taxes for the particular property and what the monthly association fees are. For example...909 Mountainview is a 2 bed/2 bath home listed at 260,000. It has 1722 sq. ft. With 20% down and a 4.75% interest rate your monthly payment including principal and interest, taxes and homeowner's association would be $1449.48 per month.

Hope this helps.
0 votes
Homeforus, Home Buyer, Tredyffrin, PA
Tue Jan 18, 2011
Please do keep coming with your responses. So far thanks to all! Here is one more clarification that I will like to resolve. If I am limiting myself with $1600 monthly expense (including HOA fees, mortgage & anything else related) then what is the maximum home price am I targeting for. I mean can I look for a 300K house.
0 votes
Jennifer Day…, Agent, Phoenixville, PA
Tue Jan 18, 2011
Good Morning,

First there is no formula for negotiating the sales price. The first thing you need to do is hire a Buyer's Agent! It cost you nothing to do so and will be invaluable to you during this process. The Agreement of Sale itself is 15+ pages with several contingencies and that does not include the addendums. Again it will cost you NOTHING to hire a buyers agent. Watch out for Broker Transaction Fees, they can and should be negotiated to 0.

Once you have a buyer's agent in place, he/she will be able to look at all the properties that have recently sold in Chesterbrook and are comparable to the homes you are looking to purchase. That is truly how you will determine the price you submit. Look for additional information on those comparables such as new kitchens, windows, flooring, extra square footage, etc. If you hire a Full-Time very experienced Realtor as your Buyer's Agent they will be able to be very helpful to you in determining what to offer on a particular property.

As far as the closing cost...I am assuming since you are putting down 20% you are utilizing a conventional mortgage. Again I have to caution you to enlist a direct lender when you are obtaining a mortgage. Choose a lender who is going to be there to answer your questions and who will get you through to the end of the process. I have no financial interest in any particular lender but have an excellent lender that does fantastic work for my clients.

The lender, by law has to provide you with a good faith estimate that will show you what the closing costs are. If you utilize a local direct lender and a local experienced agent you will find that in Tredyffrin Township the transfer tax is a bit higher than some of the other suburbs. Here is how your closing costs will break down...

Transfer Tax - 1.5% of Sales Price
Lending Fees (Including Appraisal) - Should not be more than $1,000.00 unless you are purchasing points
Title Insurance - around $1400-$1500 depending on purchase price
Endorsements (Required by every lender in PA) $50.00 each and since you are looking at a condo/homeowner association there will be four
Recording Fee (To record your deed and mortgage at the Court House) - around $185.00 depending on the number of pages
Notary Fee - $25.00
Wire Transfer into Title Companies account - Most lenders now wire the money into the title companies bank account and that incurs you a cost of about $20.00
Tax Escrows and Tax Reimbursements - Usually about 1 year's worth of taxes as you have to reimburse the seller for taxes they have already paid that you will benefit from and you will escrow taxes (if that is necessary by the lender) There is an adjustment of this amount but that is determined when the HUD 1 is completed.
You will have a capital contribution to the association - you will be aware of that number when searching at homes as each has a different amount.
Normally you wil pay 2 months of association fees up front at the time of settlement.

You will have other fees such as a home inspection (around 350.00), radon (150.00) and termite (70.00). It is your choice to have these inspections completed.

You can also get a seller's assist to help with some of these costs if the seller is open to doing so.

I live very close to Chesterbrook and have sold there often. I would be happy to assist you in anyway. My contact information is attached.
0 votes
Sally Grenier, Agent, Boulder, CO
Tue Jan 18, 2011
If you haven't talked to a lender yet, then that should be your very first step, so you know what you qualify for. Then you need to find a good Realtor to represent you as a Buyer's Agent. Your realtor will be able to search the MLS for listings that meet your needs, show you properties, determine what a good offer would be, negotiate the terms of the contract, and assist with all of the other transaction issues that come up (inspection, appraisal, etc.)

Your lender will give you a "Good Faith Estimate" of your closing costs, what your payment will be, etc. Your realtor will help you determine how much under asking price you should offer. Not sure what the market is like in Chesterbrook, but here in CO it's not uncommon for properties to sell around 95-97% of asking. So...don't get your hopes up of getting something for 20% off! The key is to have good people working for you and listen to what they recommend.

If you need the name of an agent in your area, let me know!

Sally
Web Reference:  http://www.sallygrenier.com
0 votes
Pete Simonet…, Agent, Wayne, PA
Tue Jan 18, 2011
Homeforus,

The first thing you want to do is start working with a buyer agent who can look out for your interests and answer your questions. There are lots of options to choose from in Chesterbrook - give me a call, I'd be happy to help.

Pete Simonetti, MBA
REALTOR, ABR, SRES
Weichert Realtors, Wayne, PA
610-662-9695 cell
610-687-4400 x125
610-340-2338 fax
0 votes
Linda Burgwin, Agent, Devon, PA
Tue Jan 18, 2011
401 Danor Court asking is $244,900 it is the only listing in Chesterbrook right now that fits you request. over 1,700 squuare feet and under $275,000. Has a garage. on the market 151 days. In the past 6 months 7 homes have sold under $275,000 with this much sq footage. Sold prices were 95% of asking. Closing cost: Depending on how you finance the property. FHA you can get up to 6% back for your closing cost.
0 votes
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