How Much Money DOES It Take to Buy a Home?

“How much money does it take to buy a home these days” should be the question..

No doubt the home-buying process  has been thrown upside down in this fast-paced seller’s market.  Instead of a buyer striving to get the most amount off of a sales price, and sometimes getting their closing costs paid by the sellers, buyers are now faced with the competition of how to prove themselves to be the most qualified candidate to the sellers (sometimes among many, but usually several)…to buy their home.  A buyer may state that they will not allow the market to influence their home-offer…but that buyer soon finds that after losing 3-4 offers, they are the one left without a home.  


So, what amount “does” one need before entering the home-buying rat-race of North Texas in 2015?

  1. Earnest Money- This was typically 1% of the sales price of the home.  Now, buyers are putting down 5-10% of the sales price in earnest money deposits  (and in some cases, more!) to prove their commitment to follow through on the home sale.
  2.  Option Fee – This was typically $100.00 for the standard 10-day option.  It’s now not uncommon to see $500.00 or more for the option fee and a 3-5 day option period.
  3. Inspection Fee – This depends upon the square footage of the home, but the average home-inspection for a 2700 sf home is generally around $350.00.
  4. Structural Engineer- We live in Texas.  Be prepared to see hairline cracks, mortar cracks and more.  You’ll want to have the foundation evaluated by a structural engineer if so, to confirm the integrity of the structure.  Expect an average cost of $350.00.
  5. Appraisal Fee – $350.00-375.00  in most cases.
  6. Survey – Did you agree to pay for this or did the seller? That’s another cost to account for.
  7. Escrow and Insurance – Your lender may require several months of insurance and/or escrow to fulfill the loan requirements.
  8. Origination Fee – Want to buy down your interest-rate?  This costs $ too.
  9. Closing Costs – Generally 2-5%.  We are in a market where almost no one is asking the seller to pay for their closing costs, ie:  a seller-contribution.  It happens, but it is very, very rare-especially in popular, sought-after locations.
  10. Down Payment – Let’s not forget this guy.  More of a down-payment means more of a solid offer.  While the minimum down-payment ranges from 3-20% (depending upon what loan-type you get and if you plan to owner-occupy the home), more is always better and shows the seller that you are a stronger candidate for the home.

Know someone thinking of buying their first home, or someone looking to buy a home under $250k that needs down-payment assistance?  Refer them here for options. 


Amy S. Arey, Realtor | Halo Group Realty, LLC | 214.901.1341-cell

About North Texas Lake Front Homes

Proudly serving residential home-buyers and sellers in the DFW metroplex since 2002!
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