The process of buying a home isn’t a straightforward transaction made at one time and one time only: it generally involves lot of a back and forth, with multiple offers being put in over the span of several weeks. Sometimes, the deal never closes because one party – either the buyer or the seller – isn’t willing to negotiate past a certain point. When that happens, it’s time to draw upon resources to really determine what to do to make a deal. Here are just a couple tips to help the process along – tune back next week for more helpful home selling and buying ideas.
Homeowners Association Dues
When it comes to buying a property with Homeowner’s Association fees – say a condo or subdivision maintained by a property management company – a lot of buyers get cold feet. That is, they have trouble rationalizing the commitment to paying so large a sum every month over the entire course of the period they own the house. A good rule of thumb is for buyers to request the seller to pay HOA fees for a year’s worth of dues. This saves the new owner hundreds of dollars a month, whereas a price reduction in the cost of the home by even $15,000 when amortized over 30 years hardly banks a few extra bucks each month for the buyer. Plus, a year’s worth of HOA fees adds up to a lot less than $15,000 – meaning both parties win!
If the seller and buyer are at odds when it comes to pricing, the seller can propose paying property taxes in advanced – which will take a burden off the new homeowner, who will have a new mortgage to pay off in addition to the responsibility of paying state and federal income taxes as well as property taxes come the month of April. Reducing this overload might be enough to entice the buyer into closing the deal.
The Maryland real estate experts at The Team Edge Properties can assist buyers and sellers alike in making a smooth transaction that helps them make the most of the deal. Whether a first time homebuyer or an investor looking to add to properties, we can tailor our offers to fit any individual’s needs. To learn more, visit our website here today!