Financial Insights for Buyers and Sellers: What You Need to Know in Today’s Market

Navigating the financial side of real estate can feel overwhelming, especially in a market that’s constantly shifting. Whether you're buying your first home or preparing to sell, understanding the financial aspects of the transaction is key to making smart, informed decisions. Here’s what both buyers and sellers should keep in mind right now:

For Buyers: What to Budget Beyond the Purchase Price

1. Closing Costs
In addition to your down payment, expect to pay between 2% to 5% of the home’s purchase price in closing costs. These can include loan origination fees, title insurance, attorney fees, appraisal costs, and more.

2. Interest Rates
Even small changes in mortgage rates can significantly impact your monthly payment and total interest over time. Work with a lender early on to lock in a competitive rate and understand how it affects your long-term affordability.

3. Property Taxes and Insurance
Your monthly mortgage payment typically includes property taxes and homeowner’s insurance. These costs vary by location and can impact your budget more than you might expect.

4. Maintenance & Repairs
Unlike renting, homeownership comes with ongoing maintenance expenses. Experts recommend setting aside 1%–2% of your home’s value annually for upkeep and repairs.

For Sellers: Costs to Expect Before and After Closing

1. Pre-Listing Expenses
To make your home stand out, you may need to invest in staging, landscaping, or light updates. Even small improvements can help boost your listing price and attract more interest.

2. Seller Concessions
In a slower market, it’s not uncommon for sellers to cover part of the buyer’s closing costs as an incentive. Be prepared to negotiate and offer concessions that could help seal the deal.

3. Agent Commissions
Real estate agent commissions typically range from 5%–6% of the sale price and are usually paid by the seller. While it’s a significant cost, a great agent can help you sell faster and for more.

4. Capital Gains Tax
If you're selling a home that’s appreciated in value, you may owe capital gains tax. However, homeowners may qualify for exclusions if the property has been your primary residence for at least two of the past five years.

Tips for Success on Both Sides

• Get Pre-Approved: Buyers should secure pre-approval before starting the home search to strengthen their offer and clarify their budget.

• Know Your Net Proceeds: Sellers should work with their agent to estimate net proceeds after all costs and commissions.

• Consult a Professional: A trusted real estate advisor, lender, or financial planner can help guide you through your unique situation and avoid surprises.

At Embry Group Real Estate, we’re committed to helping clients navigate not just the emotional journey of buying or selling—but the financial one, too. Whether you're crunching numbers or comparing mortgage options, we’re here to support you every step of the way.

Have questions about your real estate finances? Let's talk.