Inman Article Misleads

The headline shouts: "Homebuyers spend an average $40,000 in one-time fees"

"The one-time fees of buying and moving into a new home could set you back roughly $40,000, according to a new study from RealEstate.com — a Zillow Group company — and Thumbtack. It’s a cost that comes as a shock to many first-time homebuyers, the companies say."

Obviously written as a headline grabber - you absolutely don't need 15% for a down payment - you can certainly opt to pay that much down if you like. Some costs like closing costs (if your agent is not able to negotiate the seller pay some or all of them) will "set you back" as the writer says.

However, the down payment should not be lumped into that category as the DP is an Investment not a fee. Assuming a very skilled (not ordinary) buyer's broker was used, that investment should Move You Forward financially, not "set you back". This small amount of money (15% down payment) wisely invested in real estate will work harder for you than it will sitting in a bank, or some stock or bond fund.

The key is of course to use a buyer's agent/broker with specialized skills that sets them apart from the masses and who truly is an expert with the capabilities to assure you make a Sound Investment - and not merely just help you buy a home.

Unfortunately, most people do more research looking for and vetting the merits of a camera or TV than for the person who will help them make one of life's largest investments! These folks just settle for the nearest or first agent salesperson/generalist they happen to know or run into. When that is the extent of a buyer's "vetting/hiring" process, the less informed choices they WILL make while using a generalist can indeed "set them back" in real and long lasting ways.

Case in point - the MLS is littered with the results of poor and less informed home purchase decisions. These are homes that I call "purchase mistakes" that have quality and design issues, were overpriced to begin with, are difficult to sell - and often sell at a loss when these folks need to move again in the future.

Robert A. Whitfield

Founder, Broker/Owner

Advantage Realtors | Elite Property Management

Office 678-585-9691 | E Fax 678-826-0754