By Jory Blake, The Best Riverside Real Estate Agent
Are you thinking of buying or selling a home in Riverside , Corona or Moreno Valley this year? Do you have a home to sell before you buy another one or do you just want to know “how much does it cost to sell a home or buy a home in Riverside , Corona or Moreno Valley?
Here are the typical costs to the buyer when purchasing a home in Riverside,Corona or Moreno Valley. We will cover the cost of selling a home below:
USUAL BUYERS COSTS (Also known as closing costs) This is the total ” out of pocket” amount paid by the buyer to purchase the home. Closing costs are comprised of the buyers earnest money deposit amount , down payment amount,lender fees,escrow charges,title charges and prepaid taxes, interest and insurance :
Example for $300,000 home using an FHA loan at 3.5% down payment:
Down Payment Amount $ 10,500.00
Lender Fees $3000.00
Escrow Charges $1500.00
Title Charges $750.00
Prepaid interest , insurance and property taxes : $1600.00
Total out of pocket cost to the home buyer for this $300,000.00 home purchase would be approximately $17,300.00.
The earnest money deposit (Usually 1% of the purchase price) is deducted from the down payment at closing time. In this case you would place $3000.00 into escrow as soon as your offer is accepted. At the very end of the escrow period , you will bring in the remaining money needed to “fund” the loan. Example $3000.00 due at time of acceptance ( Day 1 of escrow) and the remaining $14,300.00 due immediately after signing loan docs ( Day 25 of escrow).
Once you close the deal, escrow will balance out the file and refund any money due to the buyer. I typically say buyers closing costs,when using an FHA loan, are generally around 6%, where as seller fees are usually 8% ( As shown below).
USUAL SELLER COSTS
(Also known as closing costs) This is the total ” out of pocket” amount paid by the home seller when selling a home in Riverside,Corona or Moreno Valley. Sellers closing costs are comprised of broker commissions, reports, escrow and title fees, transfer taxes, reports and buyer concessions:
Example for a $300,000 home sale paying a 6% total commission:
(6% divided equally between sellers agent and buyers agent) $ 18,000.00
Escrow Charges $1500.00
Title Charges $1200.00
Taxes, Reports,etc. $ 1000.00
Buyer concessions ( Home Warranty, Termite Report,etc) $750.00
As you can see, the total costs to the seller in this scenario would equal about $22,000.00 or just under 8%. In some cases, the buyer asks the seller to pay some or all of the buyers closing costs. If that were to happen , you simply add the amount of buyer credit to the sellers total costs.The seller of the home does not pay this money in cash, rather , the total cost of the sale is deducted from the total net proceeds from the sale,for example:
Sales Price of home $300,000.00
(minus sellers closing costs) – 22,000.00
Sub total $276,000.00
(minus existing mortgage on home) -35,000.00
Total due to seller at closing = $ 241,000.00
By, Jory Blake
Expert Home Seller Representation !
More Real Estate posts by Jory Blake:
How do I downsize my home? Advice for Seniors ,Family Members and Caretakers
Real Estate Videos by Jory Blake:
Are you considering whether or not this is a good time to sell your home in Riverside,Corona,Moreno Valley or Inland Empire ? Are you thinking you might just hang on to it a little longer and rent it out? It is my hope that these facts will help you make a clear decision.
Despite some skeptism, the fact that home values have taken huge leaps this year cannot be denied. In fact, just over the past 9 months we are documenting equity gains of nearly 20% in some neighborhoods. The forecast is for home values to rise an additional 7-20% in the next 12 months. What does this mean to you the seller?
Well, the good news is that on average the recent value increase provides enough additional net income to offset the cost of sale and commissions and still put on average an additional $32,000 in the sellers pocket!
We have an unprecedented low inventory crisis right now in Riverside , Corona and Moreno Valley. Many folks think that there is tons of “Shadow Inventory” that the banks are holding back…This is hogwash!
There will be NO wave of foreclosures thanks to government interference and bank manipulation of the market (Smart move). In fact , short sales and foreclosures are expected to begin the phase out process this year and it is my belief that they will be less than 10% of the market by mid-2014. What does this mean to you the seller? If you list your home properly and use a skilled Realtor, you can expect multiple buyers offering full price and above , just to get thechance to be a homeowner.
Most people sell their and have the need to purchase another. Consider this, the cost of money hasn’t been this inexpensive since 1942. If you wait to sell your home, and rates increase, the cost of borrowed money increases dramatically. Using a $300,000 home purchase purchased today, your monthly payment on a 3.5% FHA loan would be roughly $1950.00. Now, lets just say you want to wait a couple years to sell and see how the market goes. It is highly possible the interest rates will have gone up ( Fed’s cant hold them down too long) to 5.5% , your new payment on that same home would be roughly $2400.00…That’s a $450 per month increase in payment. Additionally, the cost of a replacement home would have gone up in value as well,along with your interest rate. what does this mean to you the seller? Take advantage of the extremely low interest rates today and lock in for 30 years…you will be the envy of the neighborhood!
It’s true! Just like everything in Real Estate , Commissions are 100% negotiable and with thousands of Real Estate Agent competing for your business, it is very simple to negotiate all aspects of the listing agreement, including commissions! Don’t be shy when it comes to discussing commissions and always request a sellers net sheet so you can see where your money is going. In California, the seller typically pays commission’s, transfer taxes , home warranty policy, NHD , etc. There is often a little “wiggle-room” in here that can be negotiated to help you increase your yield!
As hard to believe as it seems, Jory Blake has now opened up his ability to represent more Home Sellers for 2013. Jory has a passion for representing Home Sellers in Riverside , Corona , Moreno Valley and other surrounding communities. We are highly skilled and leave to stone unturned to ensure you (1) Make the most amount of money,(2) In the shortest amount of time,(3) With the least amount of hassle!
We are Tech-Savvy Realtors with awesome marketing,negotiating and closing skills. On average, our listings sell within 7 days of being listed and net the seller an average of 6% above expected net.
MY OTHER POSTS:
HOW TO SELL A HOUSE IN 5 STEPS-VIDEO:
Mistake #1- Too Little,Too Much or just right?–
Pricing a home for sale requires great skill. Sure, the buyer sets the sales price , but how do you get the buyer to show up with an offer? There is a true strategy to pricing the home properly. Part of this strategy includes using an appraisers approach to determine a close value based on similar closed sales. Another strategy is understanding where buyers are in the market at this very second. I’m sold on the fact that competition creates revenue for you , the seller. Its critical that you know and understand the numbers and market conditions.
It is a known fact that 90% of buyers find their home online. So…why would you possibly use an agent who has very limited internet advertising,social media or syndicating experience?It is imperative that your home be shown to as many people as possible…Waiting for Zillow to pick up your listing with a weak description or limited photos is not going to do the job. Instead, Select a Realtor who is highly tech savvy and understand how to promote your property to millions of people within 48 hours!
Mistake #3- My brothers-cousins–sisters-mother-in-law sells real estate part time
Sometimes I hear folks say….”we’re trying to sell our house,but not having any luck”. When I dig a little deeper I realize that the person they hired already has a full-time job in another unrelated field. I then wonder, what does that person do best? Real Estate or Dog Cleaning? If you are even considering selling, you will need someone that works full time as a Realtor to assist you on a moments notice,represent you the property and keep the buyer in-line. Depending on someone who is devoted in another field puts you in second fiddle, which is not what your paying for.
Wanting to get Top Dollar for your house is normal and should be one of the 3 primary goals your Realtor will focus on. But lets say you actually interview 3 agents for the job of selling your home. Two of the agents suggest a list price of $375,000 , but the third suggest a list price of $425,000. Our natural tendency is to go with the agent that had the higher list price…but is this the right way to go? BIG NO! You see, overpricing your home will and can cost you dearly in the end, therefore, it is crucial to review the comparables properly and utilize a strategic pricing method to create competitive bidding.
Mistake #5- Oh, I‘m supposed to put nice pictures up?This one really gets me ..So you hire an agent without understanding his skill level, workethic, tech-skills or sense of responsibility. Your house has been on the market for 3 weeks and you’ve only had 2 showings. Out of frustration, you go to Google and type in your street address. This is the sad moment of realization when you see that your home is being advertised with 1 or 2 crappy photos either taken at night or pulled from google street view because the “agent” simply doesn’t care. You then read on to see that there is very little in the description field
It just so happens , this agent didn’t want to bother explaining the highlights and features of your home
See my other posts :How much does it cost to sell a Home?
When you are ready to retire, your Riverside County home could be one of your
most valuable assets. Therefore, selling your house at retirement age
presents a different set of considerations than when you were younger.
Whether you’re downsizing, buying in a new community or moving in with family, it takes careful planning to get the most out of your equity.
specialized needs of seniors. Through experience or specialized training
and credentialing programs, such agents are familiar with senior
housing options, the Housing for Older Persons Act, possible schemes and
scams and the implications of various financial transactions. A
specialist can guide you in making appropriate sales decisions and refer
you to other experts as needed. Check your prospective agent’s
marketing information or talk to her broker to confirm that she has
credentials or experience working with senior clients.
(2)Know Your Riverside or Corona Home’s Current Value
Having lived in your Riverside or Corona home for many years, it is natural to be
unsure of its current value. However, lack of knowledge about current
prices could cause you to accept much less for your home than it is
worth. You also might wait too long to accept a fair offer under the
mistaken belief that a higher one may be around the corner. To find out
the current price for your home, so that you don’t lose out on a sale,
review the comparative market analysis, or CMA, provided by your real
estate agent. The CMA, compiled from data in your region’s multiple
listing service, includes the most up-to-date information about homes in
your neighborhood, similar to yours, that have sold.
(3)Investigate Incentives and PitfallsAs a Riverside or Corona senior, you should be aware of the pitfalls and incentives
associated with buying and selling a home at this point in your life.
Seek advice from your financial adviser about the consequences of these
transactions. Pensions, IRA accounts, Medicare, Medicaid, Social
Security and estate planning could be impacted by a real estate sale.
Additionally, should you plan to buy a new home in a retirement
community, you could be eligible for perks such as reduced upfront fees
and closing-cost assistance, depending on the community.
house rather than yours. You may have accumulated many mementos through the years that you may wish to sell, giveaway to family members or donate before moving. While the house is on the market, keep items you wish to retain in storage. Valuables, medications and other personal items should be kept out of sight.
We are experts at selling senior citizens homes. We cover all of Riverside , San Bernardino and Orange County. Please reach us by calling 951.742.3751 or clicking the banner below:
Independent Living in Riverside.
How to choose the right place to go.
Independent living residences in Riverside,CA, also known as retirement communities, are for seniors who are generally in good health and do not need professional assistance or supervision of their daily activities.
Residents live in single units and are responsible for their own schedule and care. Seniors are free to enter and leave the community as often they wish, however, many choose to take advantage of the amenities, activities and sense of community offered by their like-minded neighbors.
Who Lives In Independent Living?
Riverside Seniors who choose independent living are typically at least 55 years old and do not require outside assistance to accomplish basic living tasks such as dressing, housekeeping, laundry, bathing or eating. They do not suffer from serious medical conditions or mobility problems, and are able to move freely without aid.
Accommodations in these communities are smaller and easier to maintain, often resembling apartments, which allow active seniors to spend less time on chores and more time pursuing recreational, social and other activities.
What Amenities Do Independent Living Communities in Riverside Provide?
While residents are in control of their own schedules, many independent living communities provide a number of services and amenities to enhance the well-being and quality of life of their residents. Professional staff are available daily to attend to the needs of residents and it is not uncommon for communities to offer gardening, housekeeping and laundry services.
Seniors who are looking to maximize their leisure time will enjoy the convenience an independent living community can provide. Some Riverside Adult communities have on-site hair salons, libraries and dining facilities. Transportation to local attractions and shopping centers is often provided and organized outings are frequently scheduled. Many communities are also located in close proximity to cities with a wealth of entertainment and cultural activities for their residents to explore.
Is Medical Care Offered?
Residents of independent living should be in good health and not require constant medical monitoring or care. Residents are expected to visit their primary physicians for routine visits and on-going care. Luckily, many communities are located in or near major urban areas with access to quality neighborhood hospitals and clinics.
However, should a medical emergency situation occur, most residences employ on-call medical staff who will respond to emergencies and recommend a treatment plan to ensure that residents receive the best medical care possible.
Jory Blake , CEO of Seniors Home Sales of Riverside