Sound Off: Common oversights from buyers, sellers

In the excitement of buying or selling a home, it’s easy to forget the real costs of this important transaction, which are far more than just the agreed-upon price.

Buyers should budget 2-3 percent beyond the purchase price to cover both recurring and nonrecurring fees, such as pro-rated property taxes, transfer taxes, title and escrow fees, loan origination fees, homeowner’s insurance, and notary fees, among others.

Sellers need to factor in many of same costs, but add the cost of the sales commission as well, which typically falls between 5 and 6 percent of the sales price.

[...] sellers should add approximately 8 percent to the costs of selling their homes as a starting point.

More often than not, sellers will also need to spend a fair amount of money on painting, staging, cleaning, gardening and inspections.

[...] these expenses are “value added” and tend to bring the greatest return on your investment, so while such preparations may seem to be the most optional part of a sales transaction, they are also the most important in securing top dollar for your home.

Real estate transactions include a lot of moving parts for both buyers and sellers.

By due diligence I mean the research and homework that must be done before closing on a property; for example, inspections.I always suggest buyers order a complete set of inspections, regardless of how meticulous the home appears to be.

In most cases, the number of inspections comes to approximately five, but can be more based on the recommendations of the general home inspector.

[...] just placing the order is not enough — attend the inspections and ask questions.

Every home has quirks and you want to understand yours so you can formulate a plan of action.

Due diligence doesn’t end with inspections.

A critical consideration for buyers not to overlook during the course of a transaction is that once all contingencies are removed, typically the purchaser is bound by a “liquidated damages clause” that causes one to forfeit 3 percent of the purchase price should they default once the sale is pending.

Let’s say a seller waits until sometime after ratifying the purchase agreement to disclose a past leaky window, or a former mold problem or any other such item no matter how small.