Earnest Money:
In Austin 1% of the sales price is customary but not always necessary. For example: on a $300,000 house you would give the title company $3,000 to open up escrow. This money is credited to you at closing as a portion of your closing costs or down payment. Earnest Money is refundable based on provisions in the purchase contract.
Option Money:
Depending on the price of the home this can vary and it's completely negotiable but is customarily around $250 for a 7-10 day option period on a $300,000 purchase. The option period gives you time to have the property inspected and negotiate any repairs that are needed. This time period gives you the right to terminate the contract if necessary and receive your earnest money back.
Inspection:
During the option period you will hire an inspector to look at the property. Depending on how large the home is and the age the price will vary. Most of the time an inspection will run around $400-600 depending on age, size and complexity. You can also add a pest/termite, pool/spa, septic, or sprinkler system inspections as needed for additional cost.
Survey:
The survey customarily is purchased by the buyer but is a negotiable item. A survey typically costs $450. The seller sometimes has an existing survey we can use so we don’t have to order one.
Appraisal:
An appraisal of the property typically costs between $450 and $550. Your lender will usually ask for this to be paid for in advance.
Closing Costs:
These costs are made up of several things such as Escrow Fees, Lender Charges, Prepaid Interest, Taxes and Insurance. Closing costs will vary from 2% to 6% of a purchase amount depending on the time of year and the loan program you are using. You should get a good faith estimate from your lender breaking down all costs involved with your purchase. These costs can be paid at closing or some can be rolled into your financing.
