How Much Money Will You Need?

Often people, when looking at buying a house begin by looking at the price the house is listed at on the local or regional Minnesota MLS (Multiple Listing Service). That is, after all, the single largest expense of a purchase, right?

I do like to remind people, however that it is not the ONLY expense one can incur during the process though. Often simply retaining the services of a Realtor is a cost they may experience up front. Many agents in this business will ask for a some of money UP FRONT as a "retainer fee" for their services, on top of the commission they'll get after the sale.

Other agents will have a gas fee, or per-mile fee to offset the expense of them driving a buyer around to see all kinds of homes. And, at the time of the purchase, there is always a Realtors commission which are simply the cost of their representation, paperwork and coordinating everything with your lender, title and closing companies to be as stress-free as possible. And that, by the way, is already included in the price of the house & comes out of the selling agent commission.

Also, since most people must have a mortgage for their home (not too many people can afford to pay CASH) there are fees associated with the lender. There are points, underwriting fees, desk fees, courier fees, filing fees and all kinds of nickel and dime city, county and state fees. All those fees together, along with the agent commissions and all other fees make up what is usually called "closing costs". Simply "costs" associated with all the details, paperwork and  human labor that go into making a purchase happen.

Now most people know that those are just the normal costs associated with purchasing a Minnesota home. With that being said, I'd like to remind everyone considering a move about the more hidden costs that are often forgotten until you're in the throws of the whole transaction, like moving-costs!

Whether moving out of an apartment or another house, there are always things that are needed for the move. Packing materials are a must, especially for any breakables - such as:

• Boxes

• Packing Tape

• Marker(s)

• Packing peanuts and/or bubble-wrap (or newspaper, for those of us who are penny-pinchers!).

You will also either hire a moving company or utilize friends and family to reduce costs. Even if you use your people, most likely you will feed them a nice meal at the end of the day for their work.

Also, don't forget costs associated with "settling in" to your new digs. Even though you've just found the "perfect place", there are always items needed right away from shelving for storage, a new rug for a unique space, or just window coverings for your new windows. People often forget this one and it can add up quickly!

Moral of the story? Well, if you're planning a move in the near future, it's a good idea to have a little liquid funds, an empty credit card or maybe just a "slush fund" you keep handy. I guarantee you'll find more than enough use for it!