Wednesday, October 26, 2011

The Spending Cycle in a Home Purchase

Ever wonder why people say the Housing Market is the solution to our economy's crisis?  Well, here's a local look at how one home purchase can affect many different people, and it's in a very good way!

Seller Lists Home, Cleans Up Home, Makes Needed Repairs ---> Contractor for Labor, Carpet Cleaners, & House Cleaners. On average, probably $500 - $1,000

Realtor Lists Home, Provides Advertising, Signage, etc. ---> Newspaper & Magazine Revenue, Sign Companies, Website Advertising. Expense varies significantly.

Buyer Puts Offer on Home --->Home, Termite, & Radon Inspections completed. Average $500-$750

Buyer requests Seller Make Repairs ---> Contractor Fees and/or Labor. Cost Varies.

Buyer Obtains Loan for Home ---> Processing Fees to Lender $700-$1,500

Buyer Orders Title Insurance Policy ---> Premium Paid to Title Company $400-$1,000

Buyer Pays for Homeowners Insurance ---> Insurance Co receives premium. Varies.

Buyer Orders Appraisal --->Local Appraiser Completes. $400-$500

Home Closes ---> All parties are paid, Realtor receives commission, Seller Purchases New Home and Becomes a Buyer, and the cycle starts over! Endless possibilities!

JK

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