Wednesday, March 7, 2018

What Costs Should Buyers Expect While Under Contract?

What expenses can homebuyers expect once they’re under contract? Let’s find out.

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What are your costs once you’re under contract? This is a common question, so I’ll be going over the answer, today.

First and foremost, you’ll have two checks to write when your offer is accepted. The first check will be the earnest money check, which is 1% of the sales price, and the second check will be your option check, which buys you an option period.

The option period can range from three to 10 days and the amount you’ll write the check for can range from $100 to $500.

Each of these checks will be dropped off with the title company within two days of going under contract.

After that, you’ll have another check to write. This time, it will be for the inspection. The price of an inspection ranges between $300 to $450 depending on the home’s age and location. Addition inspections, such as HVAC or termite inspections, will be an additional cost.

All of the costs you’ll have once under contract will vary depending on your specific circumstances.

The fourth check you’ll need to write is for the appraisal, which is done once the option period is up. The appraisal will range in cost from $475 to $650.

Once all of these early costs are taken care of, you’ll have some expenses related to getting your loan in order, such as lender fees, title fees, taxes, and insurance.

Like other costs, the price of homeowners insurance will vary depending on the age of your home. You should anticipate this expense to amount to anywhere from $75 to $150 per month.

Obviously, the expenses associated with your specific transaction will highly depend on your individual circumstances, but I hope this has given you a basic idea of what to expect.

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

Monday, January 29, 2018

The Homestead Exemption Can Save You Money

Today we’ll give you a couple quick predictions about the 2018 market to come, as well as a great tip that can save you money on your tax bill.

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Want to buy a home? Search all homes for sale.

We hope your 2018 is off to a good start! Here at the Lancashire Group, we have a very positive outlook for what’s to come this year. Today, we’re going to give you a quick rundown of our predictions for the 2018 market, as well as a good tip for how you can save money on your property taxes.

Based on what we’ve seen so far, demand remains incredibly strong this year. Interest rates remain at historic lows, although we have been told that they will be going up as we get closer to the springtime. Given the demand, it’s a great time to sell your home, and because of the rates right now, it’s also a great time to buy. Take advantage of the low interest rates before they begin to rise.

Those that qualify for the homestead tax exemption can save up to 20% on their tax bill.

If you were lucky enough to have purchased your home last year, we have a great little tip for you. The following are the links to print and fill out a homestead tax exemption form, which you can then mail to the address listed at the top of the form: Travis County, Williamson County, Hays County and Bastrop County.

As a reminder, those that qualify for the homestead tax exemption can save lots of money—up to 20%—on their tax bill.

If you have any more questions about the homestead tax exemption form, buying, or selling in the Greater Austin area, feel free to reach out to us. We’d love to be your real estate choice this year.

Monday, November 20, 2017

How Do Capital Gains Tax Exemptions Work?

Do you know how capital gains exemptions work? If not, don’t worry because we’re explaining them today.

Want to sell your home? Find out what your home is worth.  
Want to buy a home? Search all homes for sale.

We’ve been having a lot of conversations lately about capital gains tax exemptions for homeowners. Here are two of the most common scenarios we run into.

In one scenario, a homeowner tells us they are considering selling their home, but wanted to know more about how they can save some money on the proceeds of their sale. If they have owned the home for at least two years and if it has been their primary residence for those two years, then the homeowner is eligible for a capital gains tax exemption when the time comes to sell the home. If they’re single, the exemption covers up to $250,000. For married couples, that number doubles to $500,000.

Capital gains exemptions are a great tool for homeowners looking to build wealth.

In another scenario, a homeowner wants to sell and take advantage of the exemption but isn’t quite sure if they qualify because they haven’t lived in the home the entire time. If they have lived in the home for at least two of the last five years as a primary residence, then they qualify.

If you have any questions for us about capital gains tax exemptions, we’d be glad to answer them.
Give us a call or send us an email today. We look forward to hearing from you.