A Basic Guide on Closing Costs When Buying a New Real Estate Property

Buying a house entails a lot of added costs other than the mortgage that you will pay monthly. One of the costs that are often forgotten by first-time buyers are the closing costs. Knowing what the closing costs are and negotiating with the owner of the property about who will pay for what part of it can save you a lot of headache in the future. Sometimes not knowing about closing costs can take you by surprise. If you’re working around a budget, requiring a big amount out of pocket can upset your budget in a big way.

Many people who overlook closing costs when buying real estate don’t understand that closing costs are part and parcel of real estate ownership when it approaches the final stages of the purchase. Closing costs is a general term for several fees that need to be covered including taxes, an amount placed in escrow, title insurance fees, lender’s inspection fees, loan origination fees, transfer taxes and a lot more. There are a lot of fees involved during the process of transferring a property from one owner to another. In order for you not to be taken off guard by all these fees, it’s important that you know exactly which ones you should expect.

For example, if you buy Fountain Hills real estate and are paying for part of the amount through a loan, the closing cost would include loan origination fees. This is usually 1% of the amount you will borrow and it’s used for the administrative costs that come with processing your loan. You can prepare for this by estimating the cost based on the price of the property you want to buy. Say for example you’re looking at Fountain Hills homes for sale and see the usual price range of properties in the area you are eying, you’ll know more or less how much you need to prepare for the loan origination fees. For example, $5000 for a $500,000 property. This is typically the biggest fee you will encounter with the closing costs.

Lenders would also often require a professional to look at the house you are planning to buy and assess the value of the property. Because of this, you’d most likely also need to pay for the appraisal fee. Basically what the appraiser would do is to determine if the price you (as the buyer) offered to the seller is justified based on the current value of the properties around the same location, as well as other factors.

There are some closing fees that may be split between the buyer and the seller if they agree on it. An escrow is a third party used to hold the money and papers concerned with the property during the transaction. Once the transaction is finished or closed, then the property and papers will be released from escrow. Since it’s in the interest of both parties, it’s only reasonable to ask that the seller also participate in paying the escrow fees.

Learning Business and Real Estate From Board Games

There are many board games that teach you something; many games are designed to teach math skills, strategy, and spelling. Some give you the facts by having you answer a ton of trivia questions. Then there are those who teach players the concepts of buying real estate, running a business, renting their properties and banking. One such game is one of the most successful of its kind, Monopoly is known for teaching more than 750 million people how to manage their money and become more successful.

Other real estate genre games include the game called Rochester on Board; it is a game of real estate trading that teaches its player a concept of property trading. The board it self looks a lot like the Monopoly board and is played in almost the same way you would play that game.

For a major twist on your classic business and real estate board game players are also invited to check out the Anti Monopoly game, the twist is that players will get to choose from free enterprise or working towards getting a monopoly of their properties. In addition, it gives you real life legal problems that you must overcome before you can become the winner of this game. In this process you will be able to decide whether or not your competitor is charging fair market values or is he a monopolist and wants to have all of the properties and charge huge fees.

When you are playing real estate games, you will learn about developing the property in the game, by adding houses and hotels, you will also learn that you can charge rents and get direction from the bank like paying taxes. You learn buying strategies throughout these games, you learn when is the right time to buy a lot of property or when you should buy one monopoly and develop the property.

Another thing you learn about this type of game is how to develop alliances with the other players, they may hold some property, you may need then you will also learn about negotiating with the seller to sell you his or her property. In many of the variations of these games, you learn other concepts such as real estate trading and investments, where you learn the same negotiating skills and are played by those who enjoy being Wall Street tycoons. It give children the ability to learn something about what is happening in the world of real estate, also giving them counting skills, and memorization, that they will need in order to succeed in the world today.

Lastly real estate games are great family games that can be played by everyone in your household. These games also have a children friendly component that families find age appropriate for children who do have counting skills can learn to buy property, learn to be the banker, trade real estate and enjoy a fun time beating their parents at this game. When playing real estate board games make sure that children know all of the rules before they start playing the game.