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Buyers: How Much Must You Bring to the Table?

Friday, March 12, 2021   /   by Vyral Marketing

Buyers: How Much Must You Bring to the Table?

Here’s a deeper look at the total cost of purchasing a home right now.

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Traditionally, buyers have had to budget for some closing costs, a down payment, and any other fees associated with the lender. How much money does a buyer need to bring to the table in order to purchase a home in today’s red-hot market?

In every market, you’ll need a down payment. The specific amount will always vary depending on the loan type. VA loans usually allow you to put 0% down, FHA loans require at least 3.5% down, and conventional loans can be anywhere from 3% to 20% or more. Keep in mind that those are minimum requirements; if you’re willing and able, you can go beyond them.

"Buyers in today’s market may have to pay $3,000, $5,000, or even $10,000 over the appraised value."

In addition to your down payment, you’ll also need to pay closing costs, which include title fees, escrow fees, origination fees, and other lender fees. As the name suggests, those fees will be collected at closing. Whereas in a more balanced market we could negotiate for the sellers to pay some—if not all—of these costs, the burden falls solely on the buyers in today’s market. That’s due to our low supply and how much competition there is for each home that hits the market; sellers have incredible leverage right now.

Here’s something rather unique about our 2021 market: Buyers need to be prepared to pay a certain amount of money beyond a property’s appraised value. That could mean $3,000, $5,000, or even $10,000 over appraised value. In a recent situation, a buyer needed to pay $100,000 above the appraised value in order to beat out the other bids. Clearly, you need to have sufficient cash on standby to compete at a serious level.

Here at Elite Results Realty, we have great strategies for making sure our buyers get the best home at the best price possible with the least amount of out-of-pocket money. If you’re interested in purchasing a home in today’s market and want to talk through a few questions, please don’t hesitate to reach out. We’d love to help.


  buying a home

Elite Results Realty
Rob Hale
1744 S. Val Vista Dr Ste 206
Mesa, AZ 85204
480-845-0048

© 2021 Arizona Regional Multiple Listing Service, All rights reserved. The data relating to real estate for sale on this website comes in part from the Arizona Regional Multiple Listing Service. Real estate listings held by brokerage firms other than Elite Results Realty are marked with the Arizona Regional Multiple Listing Service logo and detailed information about them includes the name of the listing brokers. All information deemed reliable but not guaranteed and should be independently verified. All properties are subject to prior sale, change or withdrawal. Neither listing broker(s) nor Arizona Regional Multiple Listing Service shall be responsible for any typographical errors, misinformation, misprints and shall be held totally harmless. July 30, 2021
© 2021 Arizona Regional Multiple Listing Service, All rights reserved. The data relating to real estate for sale on this website comes in part from the Arizona Regional Multiple Listing Service. Real estate listings held by brokerage firms other than Rob Hale - Elite Results Realty are marked with the Arizona Regional Multiple Listing Service logo and detailed information about them includes the name of the listing brokers. All information deemed reliable but not guaranteed and should be independently verified. All properties are subject to prior sale, change or withdrawal. Neither listing broker(s) nor Arizona Regional Multiple Listing Service shall be responsible for any typographical errors, misinformation, misprints and shall be held totally harmless. July 30, 2021
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