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i turn REALTY into REALiTY

A Cow For A Refrigerator?

money in the hands

Money

The single biggest stumbling block in a real estate transaction. It can cause a deal to fall apart, or it can keep it together.

The Single Biggest Question?

Who Pays for what? Or stated another way, Who will pay for it? Depending on where you live, the answer may change. Many first time home buyers often have no idea as to what fees and costs are associated with a home purchase, so I thought this post might serve as a good primer for those folks.  Even if you’ve purchased many homes before, you may not have realized what was on that HUD statement that you received when you signed your closing papers.  Hopefully, the document provided by Commonwealth Title will answer some of those questions.  You can see the list of fees here.

It’s All Negotiable!

When it comes to real estate, everything is negotiable.  The provided list is only a reference point.  As noted at the bottom of the document, payment of the fees can be negotiated within the contract.  It is currently a “buyers” market (supply of homes is greater than the number of available buyers), so in some transactions, sellers have been willing to pay certain closing costs on behalf of the buyer, to make their home more attractive to potential buyers.  These fees can be negotiated throughout the transaction at specific points in time, based on contingency clauses within the purchase and sale contract.

Get Creative!

At a time when money is tight, some parties have gotten pretty creative in order to conserve their limited cash.  I’ve seen transactions where cars were traded in lieu of real estate commissions, and appliances left in exchange for home repairs. The thing to remember is that money doesn’t necessarily need to mean actual dollars. However, unless you are paying all cash for a home that is owned free and clear by the seller, check with your lender before you start trading your livestock for appliances!

What are your thoughts? How creative have you gotten in a home sale? Let us know!

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