How Much Does It Usually Cost to Buy a Home?

There are several different fees associated with buying a house. This informative guide covers how much it'll cost to buy a home.

Did you know that more than seven million homes are sold every year? Whatever type of market we are in, people are buying and selling. 

But as of 2020, home prices have been on the rise. In fact, home prices are skyrocketing. And no one knows if they are going to come back down anytime soon.

If you’re considering buying, now may be the best time, so you can lock in a house before prices continue to climb and you get priced out.

So what does it cost to buy a home these days? It depends on a few factors. Keep reading to find out what you can expect when looking at homes for sale.

Average Purchase Price

Real estate is local. The average price in New York is going to be very different than the average price in Kentucky.

And the average price in Manhattan, NY will be very different from the average price in Frankfort, KY. 

Towards the end of 2021, we saw the median price for homes in the US reach $400,000 for the first time. That means that in some markets, like California and New York, you can expect to spend more.

In areas like the Midwest, you can spend a fair bit less. It also depends on what type of property you want and what kind of neighborhood you’re looking for.

If you want to know how much a lake house is going to cost, you’ll need to speak with experts on lakes in your area. The team at Lake Keowee realty, for example, specializes in luxury lake homes and can tell you exactly how much you might expect to spend. 

Closing Costs

Unfortunately, the home buying process isn’t as simple as handing someone some cash and walking away. For most people, buying a house means getting a mortgage. And that is quite a lengthy process.

And it comes with its own home buying fees. Closing costs are all the expenses associated with a real estate transaction that are above and beyond the actual purchase price.

There are a lot of people involved in the transaction, such as real estate agents, mortgage lenders, title companies, appraisers, and so on. And all of them need to be paid for their time.

Some expenses are paid by the seller, but some are paid by the buyer. These are your closing costs. In general, you can expect these to be about 3% to 6% of the total purchase price of the home.

So if you’re house was $300,000, you might spend an extra $9,000 or more on closing expenses. These are upfront, though they can sometimes be rolled into your loan. 

You may also need to pay for upgrades and repairs to the home that you buy. You’ll want homeowners insurance in place, and you’ll want to have money to cover your first few mortgage payments.

The Cost to Buy a Home Is Rising

The cost to buy a home in the US is rising. And it’s rising fast. But there are still places where buying a home is accessible to nearly every budget.

Plus, there are programs that help new buyers lock in a home purchase without putting 20% down. If your dream is homeownership, don’t give up until you have your key. 

Looking for more information? You can find other insightful articles on our blog now.