When purchasing a home, the first thing we usually think about is our price point - what can we comfortably afford based on our income, expenses, and loan options? We also like to dream about the furniture, drapes, and the colors that we will paint our new home. But it’s important to look at the overall expenses involved when purchasing a home so that those costs are included in your budget. Today we interview Melody Visser, as she shares her top 5 costs associated with buying a home. Join us! 



You can also listen for free on Apple Podcasts, Google Play, and Spotify! 

Costs that are associated with purchasing a home usually consist of the down payment and closing costs. Correct?

Yes! The down payment and closing cost are your biggest expenses but there are a few other costs that we want to discuss as well! 

Down Payment

Many buyers think that they will need 20% down to purchase a home, but that is not always the case. There are many different type of loan programs available, some even offering 0% down options. Many people are paying the same if not more in monthly rent, not realizing that they are eligible to purchase a home. Melody had a buyer who walked away with money, who received grants, and was a veteran, which really helped her secure her dream home.

Closing Costs

Closing costs are about 2.5% - 3% of the sales price. So if you are purchasing a home with a sales price of $300,000 then your closing cost will be around $7,500-$9,000.

Earnest Money Deposit

Along with the sales contract, the EMD is a buyer's way of showing that they're serious about purchasing the home. The money is held to protect the seller's interest. Typically, an EMD is around 1%-3% of the sales price. This money is credited back to the buyer at settlement on the Closing Document.

Inspections: Home, Radon, Wood Destroying Insect

Although this is not a requirement, Melody highly recommends that all buyers get a home and radon inspection. During a home inspection, you may walk through the home with your REALTOR and home inspector to determine whether or not all items are functioning normally (HVAC, washer/dryer, stove, etc.) and allows you a chance to learn how your new home operates. Additionally, if there are issues, you can address those with the selling side to determine a solution. A home inspection typically costs $450-$600 for the Loudoun area’s average sales price.

The bigger the home, the more the home inspection will run. Radon Inspections run $140-$150. You may choose to have additional inspections if the home has a well, septic system, pool, and wood destroying insect inspection, etc. In some cases, you can request that the seller pay for the septic and/or water test. Lastly the WDI inspection is very important as they will check to make sure there are no termite, carpenter bees, etc and the cost is only about $40- 50.

Moving Expenses

The cost can vary. If you have a large home with a lot of "stuff" it can run you thousands of dollars. Across town versus across country also makes a big difference. I recommend getting a few quotes to make sure you are getting a fair price and always make sure that the moving company has insurance! If you decide to pay your friends in pizza and beer for helping you move, you will need to be prepared that things may not go as smoothly as with a professional mover! If you trust your realtor, (hopefully you do!) than Melody and Karen suggest asking who they know! Many times, this is the first, or second time you have moved, so asking someone who has helped buyers/sellers move 100’s of times, is a smart move! 

Melody is from Chesapeake VA, where we stayed for our annual team retreat! 

She grew up not far from the beach (where our annual retreat was this year) and would sneak out when she first got her license and go to the beach with her friends! (The sand in her car most likely gave her away!) She misses the water but has now lived in Northern VA longer than Chesapeake and loves the area!

If you would like to reach Melody, you can find her on her page HERE


Tune in next week to chat with our TRI-lingual platinum group member, Tatjiana, who shares why open houses are so important.