“How much money do I need to buy a house?” This is a question that almost everyone asks themselves sooner or later. Buying a house is never easy, but it helps if you know how much money you will need to spend. So if you’re planning to buy a house for the first time, and you don’t know how much money you’ll need to spend, then here’s some information that you may find useful.
How Much Does A Home Cost?
According to data gathered by the Federal Government, the median price for US homes in the last quarter of 2017 was around $320,000, while the average price was almost $380,000. So if you’ve never bought a home before then be prepared to prices like these.
However, it’s also worth mentioning that home prices tend to vary from state to state. So it’s possible to get a better deal on a house if you live in a state where the median home value is significantly cheaper than the national average.
In Texas, for example, the median home value is around $270,000, which is lower than the national average. However, don’t let the low cost fool you. Home prices in Texas have gone up by 6.7% in the past few years, and are expected to rise by around 4% this year.
Other states, such as Ohio, Michigan and Iowa, also have cheaper home prices compared to the national average. Their low prices are the result of a wide variety of factors, which means that there’s usually plenty of room to negotiate the price down even further. So if you are not willing to pay almost $400,000 on a house then you may want to move to state or city where property values are relatively low.
Facts About Homer Buyers
If you’re planning to buy a home for the first time, you should take a look at your median income to see if you have what it takes. The National Association of Realtors estimates that first time home buyers have a median household income of around $72,000, while repeat buyers have a median income of around $98,000.
Also, most homes that have been purchased since 2015 are around 1,900 square feet, and around 2 decades old. Most of these homes also feature three bedrooms as well as two bathrooms.
Finally, the National Association of Realtors also estimate that home buyers typically finance 90% of the total home prices. So unless you have a lot of savings, it’s almost inevitable that you will need to negotiate a loan in order to buy a new house.
Down payments usually vary between 3.5% to 20% of the total price. Properties that have high down payments usually require FHA backed loans.
It’s also worth mentioning that you can pay more than 20% in down payments if you have access to the necessary funds. Doing so, will lead to a lower interest rate as well as lower mortgage payments, which is why you should carefully negotiate this issue. If you have access to favorable FHA backed loans, or if you simply have the necessary funds, then paying a high down payment would be in your best interest as a future home owner.
Earnest Money Deposits
After you have come to an agreement with the person who wants to sell their house in San Antonio, you will then be expected to pay around 1% to 5% of the price immediately. Earnest money deposits usually range from less than $100 to $5,000, depending on the cost of the property and the terms of the seller.
This earnest money deposit will be held either by the seller or the realtor until the conclusion of the transaction, where it then becomes part of the down payment. However, should you decide to back out of the deal then the seller gets to keep the deposit.
Aside from buying the actual property itself, you will also need to worry about other costs and expenses. One good example are home inspections, which usually cost between $300 to $600. Although home inspections are not always necessary, they are very useful tools for negotiating with home sellers, particularly if the property requires renovations.
Next, you will need to be prepared for moving costs. The national average is usually around $800 to $850. If you’re lucky, you can negotiate the price down to around $500, but if you need to move a lot of items then expect to pay more than $1,000 on your moving costs.
Finally, you will need to insure your mortgage. You can expect to pay your first annual premium at the closing of the deal. The cost of your mortgage insurance will depend on the terms of your mortgage loan, which is why you will need to think about them as soon as you have decided to buy a house.
All in all, you will need between $250,000 to $400,000 to buy a fairly average or above average property in the United States. And although home prices tend to vary between states, you’re not likely to find a state that has a median house price that goes below $200,000.
The good news is that home financing is now easier than ever before. So if you’re looking for a new home then there are plenty of favorable FHA-backed loans for you to choose from.
Professional Home Buyers
Ordinary people aren’t the only ones who buy homes. There are also plenty of companies who specialize in buying properties. We are one such company, and we are prepared to offer you the best deal for your house or property.
We buy houses in San Antonio, Texas, and we specialize in buying a wide variety of real estate properties all over our community. However, unlike individual home owners, we are prepared to pay you the funds you need as soon as possible.