Home Buying Frequently Asked Questions

Home Buying Frequently Asked Questions

Who pays for home inspections?
The buyer chooses his or her own home inspector and the buyer pays for the inspection. Most home inspectors accept cash, check or credit card. They usually expect payment at the home inspection.

How much does a home inspection cost?
This depends on the size of the home and typically range between $400 – $600. Other inspections that I recommend get done are radon inspection, sewer scope and tank sweep. The cost for these three inspections are usually around $450, in addition to the home inspection.

Who pays your commission?
The seller pays the buyer’s agent’s commission. This is done at close of escrow and the commission is based on a rate that the seller advertises with the listing. This is also the case with new construction.

Should I use a buyer’s agent with new construction?
Yes! It is important to have a buyer’s agent helping you negotiate the terms, review the contract and advise you throughout the transaction.

How long will it take me to find a home?
It depends. The average home buyer goes out to look at homes between 3 – 5 times before finding the right home. Sometimes less and sometimes more. Your time will be more efficiently spent if you are realistic with your expectations, know what you want and know what your budget is.

How long is the escrow process?
The average escrow period is 45 days. However, if you are not financing the purchase and are buying your home all cash, then escrow can close faster, usually in as little as 14 days. The main determining factor of the length of the escrow period is your lender.

When can I move in to my new home?
Once escrow has closed on a property – you own it. Typically, the previous owner delivers possession at 5:00pm on the day of closing.

How much are closing costs?
On average, closing costs are around $1,500, in addition to your lending closing costs. Ask your lender for a good faith estimate that will break down the fees associated with the loan. I can also provide you an Estimated Closing Statement that shows all fees involved, including pre-paid costs such as property taxes, homeowner’s insurance.

Who pays for closing costs?
The buyer and seller will each have their own set of closing costs. For example, the seller pays for his part of the escrow fees, and the buyer pays for his. Also, the seller pays for the owner’s title insurance policy, and the buyer pays for the lender’s title insurance policy.