PHX — As sales surge across the country, real estate buyers are losing money on every transaction.
And that’s even before you factor in taxes, appraisal fees and other expenses.
“It’s the same as the mortgage market,” said Scott Ehrhardt, a real estate broker with Keller Williams.
“If you have an equity market in your home, you are going to lose a lot more money.
You are going do more work to sell your home.”
Ehrhardt said it’s not unusual for an investor to pay $3,000 to $4,000 more than a typical sale price.
And it’s also not uncommon for an owner to pay tens of thousands of dollars more than the purchase price.
Real estate agents, who are also brokers, say the average real estate transaction costs between $20,000 and $40,000, depending on the type of property, the size of the transaction and how much you’re willing to shell out for a property.
If you’re buying a home, the typical transaction costs about $30,000.
For a home-buying transaction, Ehrhart said it could be even more expensive because of the appraisal process, which typically takes five to 10 days to complete.
The process involves asking an appraiser to identify a property’s value, determining the fair market value of the property and then deciding whether to sell or lease it.
Ehrart’s real estate agency charges about $50 per square foot, which is double the typical price of a home.
“You can get a home for about $20 million,” Ehrick said.
“The process takes five days.
The seller has to wait until the broker does the appraisal.
If the buyer wants to sell it, he can wait for a few weeks.
So that’s a big expense.”
Real estate experts say if you can’t find a property with the right price, you should definitely check with the seller and ask questions.
“If the property doesn’t sell or it doesn’t show up for an appraisal, that’s when the agent comes in and says, ‘Well, you know, we need to do a better job of closing this deal,'” said Steve Rader, a Los Angeles-based real estate attorney.
“So if the seller hasn’t made any progress, he has a very strong case.”
Rader said if the buyer hasn’t done a good job with the sale, he might want to look at another property.
“It could be a property that has gone up in value.
It could be someone that is just not ready for sale, and he needs to work on that,” Rader said.
The average price for a home can range from $400,000 for an old house to $2.4 million for a new one.
If an investor buys a home with a high asking price, they could be paying more than $2 million.
In some states, a home has to be sold for at least a year before an appraisals are completed.
The sale of a house for at-risk values is not allowed, and it can take as long as six to nine months to complete the appraisal, according to the Federal Housing Administration.
A good appraisal is a good way to avoid a potential foreclosure.
However, a good real estate agent is also essential to the process.
“I would never put the broker in the situation where he is trying to save himself money by not doing an appraisal,” Ramer said.
“The broker will do an appraisal and a property may not sell for that appraisal,” said Rader.
“But the agent will tell you the appraisal is good, and the broker will look at that, and see if it’s something that you can sell.
And if the property sells, you will be paid, in some cases, hundreds of thousands.”
Realtors say it’s a great investment to buy property and get a good return on it.
But if the price isn’t right, it could hurt your chances of winning a home sale.
“Some of these people are going into a situation where they are just really looking to make money, and they aren’t going to do the due diligence,” said Ehratt.
“There’s no guarantee of winning in that situation.”