Tallying’s home buying’s bottom line

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The real estate market is starting to pick up again and folks are starting to think about possibly buying or selling. If you fit that profile, now is the perfect time to start doing some due diligence. In other words, find out what it’s going to cost you.

There are many different factors that can affect your bottom line. Closing costs can include broker, appraisal, processing, attorney and title fees and your down payment percentage just to name a few. Along with that, let’s not forget good old Uncle Sam! Property transfers can include state, county and local transfer stamps.

In many states, including Illinois, taxes are paid in arrears. When you receive a tax bill in the mail in 2015, look at the dates on the bill. You’ll notice that the bill is for 2014. What does that mean when selling your home or buying a new one? Well, at the closing table, the sellers usually will issue a credit to the buyers for a prorated amount of the previous year’s tax bill since it has not been sent out yet by the county. There are also other factors in the tax bill you need to look for such as a homeowners or senior exemption that may go away once you purchase the property, thus increasing the tax bill.

Are you considering a condominium? What kind of association fees does the complex have? Is there a special assessment on the building? What projects are pending for the building that could increase your monthly assessments? Are you able to rent your unit if you wanted to? These are some basic questions you should be asking whenever you consider “attached” living.

So you have equity in your current home but don’t have the cash for a down payment on the home you want? Contact a mortgage specialist and discuss the possibility of taking out a home equity loan on your current property. That money can then be used as a down payment on your next residence and will be paid back from the proceeds of the sale from you old home. This must be done prior to listing your home on the market since most lenders will not do equity or refinances while a property is on the market.

No matter what type of real estate transaction you’re considering, consult a strong real estate professional along with your attorney!

From all of us at Zerillo Realty… godere della stagione primaverile!

About Giuseppe Zerillo

Giuseppe Zerillo is the managing broker and owner of Zerillo Realty Inc. He is active on many boards, serving as village trustee of Harwood Heights and corporate secretary for Casa Italia. In 2011, he received the IANU Foundation's 2011 David Award for outstanding promise in the field of real estate, and in 2012 he was honored by the Illinois State Crime Commission for his community outreach. Constantly seeking opportunities to give back, he donates to several charities and raises money for children with disabilities.

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