Real estate comes with extra costs
Buying a property is more than meets the eye, it’s not just negotiating the price and shaking hands at the end. In the short term, real estate transactions might not be so profitable as they come with certain costs that many buyers often overlook.
For instance, apart from the actual purchase price, future owners will also have to cover various extra fees such as title insurance, property taxes, home inspection fees and lender costs. Overall, you might be paying around 5 percent more than the sale price, without including the future costs for repairs or upgrades. If you intend on selling the house sometime in the coming years, you’ll more likely end up with even higher closing fees considering that these between 8% to 10% of the transaction’s value.