Jul 282012

The ‘Cash Costs’ of buying and selling a home are often overlooked. We clarify with you and help you understand the timing and amount of non-mortgage costs (cash) you will need. Once you know your numbers, the pressure and uncertainty you feel eases. Then you can make the right business decisions.

You will often hear the term ‘closing costs’. Two points are critical to remember here:

First, think of these as ‘cash costs.’ The cash costs are funds you require in addition to your down payment, if you are a first time buyer, or, if you are already a home owner, the equity you will be applying to the purchase of your next home.

Second, you will need access to these funds to pay ‘cash costs’ at various times leading up to the purchase of your home-not just the week before closing. Examples of a cash cost would be the deposit you provide when the offer you make on a property is accepted, the cost of title insurance you will incur when the purchase of your new property closes, and the Land Transfer Tax you will have to pay.

We itemize these costs and review with you when we have our first buyer’s meeting. The spreadsheet we have developed is easy to understand and available to you in both pdf and excel formats, the latter so that you can make changes as required.

It’s good to have no surprises when money is concerned. Our process minimizes surprises.

The Blair Zilkey Team-Insightful Advice, Leading Edge Implementation.

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