Tuesday, December 27, 2016

How To Earn More Than 100% Of Every Real Estate Commission Through Profit Share At Keller Williams Realty

Pamela Madore
Keller Williams Realty
806-290-1920



How To Earn More Than 100% Of Every Real Estate Commission Through Profit Share At Keller Williams Realty


That sure is a mouth full.  And what in the world does it mean?  I am going to give you a lesson about commissions and how they work and how you can earn more and more each year without listing or selling any more houses than you did last year.

At Keller Williams we have many different opportunities available to all of our agents.  We aren't like traditional companies that offer you one thing and it becomes "rinse and repeat" every year.  That generally means that the day you take your last sign out of a seller's yard that is the day you are out of business.

Not so with Keller Williams.  That could be the first day of your new business!  Read this article called my "1096 Day Retirement Plan".  It might give you some insight.

At KW I teach a class on this from time to time.  Check with me for the next date.  Or I can go over this with you when we meet.

Here is the abbreviated and simplified version of how it works.  

At Keller Williams we believe that you shouldn't always owe the broker money on every commission.  We work on anniversary years.  From anniversary date to anniversary date, once we pay Keller Williams our "cap" then the rest of the commission income for the rest of that years is ours at 100%.  That should be obvious to say that it is important to "cap" as soon as possible.  

We have the models, systems, and tools available to grow our company exponentially without losing anyone in the dust.  We take great pride in helping others succeed.  Much of our in-house training is shared by other agents that are particular good in a particular field.  

We are friendly competitors.  We help each other.  Why?  That is the part about earning more than 100% of your commission,

We have what is called "profit share".  This isn't a typical profit share program.  In short, how it works is that at the end of each month our "market center" has a profit.  That profit is divided 50% (about--their is an algorithm beyond my comprehension) and the other 50% goes to the agents within the office that has helped Keller Williams grow by inviting other agents into our company.  

So, for instance, let's say your cap is $25,000 (I can explain that in person) and after that you are on 100% commission for the rest of the anniversary year.  In the meantime, let's say you invited 10 people into the company and they also invited 10.  Depending on the amount of profit (I shut the bathroom light off when I leave the bathroom--save money--more profit share) we have for the month you get your share.  

From here let's imagine that your profit share for the year was $30,000.  See where I am going with this?  That $30,000 paid for your cap of $25,000 which
means that you in essence received 100% of your commission for the year.  And has an added bonus you made an extra $5000 which means you actually made more than 100% of your commissions for the year.

Sound complicated?  It really isn't.  When we meet I will show you all about how it works.  You will be pleasantly surprised how you can set up your retirement plan no matter how old you are.  

Contact me for teaching dates and, as always, I will be happy to meet with you one on one.

Pamela Madore
Keller Williams Realty
3955 S Soncy Rd
Amarillo TX 79119
806-290-1920
pammadore@kw.ccom

 





How To Use Your Income Tax Refund To Buy A House

Pamela Madore
Keller Williams Realty
806-290-1920

How To Use Your Income Tax Refund To Buy A House



It is that time of year again when Uncle Sam sends you back the amount of money that you overpaid. You may already have plans for it but I would encourage you to think about buying a home.

It is tempting to wait until you get the money in hand to start thinking about what to do next.  That really isn't the best way to do it.  You might be afraid that you will be disappointed if it doesn't work. Believe me when I tell you that it will be more disappointing if you don't act first.

While you are waiting, the most important thing to do is to get approved for a mortgage.  It could be that there is something stupid on your report that needs to be fixed.  It is better to do it now than to find out at the last minute!

Maybe your credit scores are a little low.  That may not be more than a 30-60 days problem.  Once again, let's get it fixed up front.


Not sure you will have enough money?  Just to help you with some math the
type of mortgage that you can get into with the least amount down is an FHA.  FHA requires that you have 3.5% as a down payment.  Since I am a little math
challenged I always use $100,000 as my example.  In this example the down payment would be $3500.  You will have closing costs that are usually at least $3500 or maybe more.  The good news is that the seller will often help with the closing costs.

So don't wait!!  Get a start on using your income tax refund to buy a house.


 Get qualified!

One of the favorite lenders I use is http://rightstartmortgage.com/amarillo.   They will run your credit and tell you how much you qualify for.  It only takes 10 minutes to fill out.  When it asks who referred you write "Pam".  By doing that they will know who to contact.  It is also effective if you text me once it is done so I can follow up.  806-290-1920.

Do  it today!



Pamela Madore
Keller Williams Realty
3955 S Soncy Rd. 
Amarillo TX 79119
806-290-1920
pammadore@kw.com

 

New Year! New Career in Real Estate

Pamela Madore
Keller Williams Realty




New Year!  New Career in Real Estate



Join the fastest growing real estate company in the world!

There must be a reason that people want to join Keller Williams.

We believe that it is about lining our own pockets and not that of the owners.  We are encouraged and trained to grow our individual businesses  under the umbrella of KW.  They provide the models, systems and tools necessary to become successful.  We aren't thrown out to the wolves with no idea what to do.  You have to be willing to plug in to the systems and learn and do what needs to be done.

Everyone  helps each other because it is important to all of us to have a growing market center.  I can show you how you can earn more than 100% of all of your commissions.  Click here for more information.

Does that sound too good to be true?  It is too good to be true!  But it is true.  If you are going to be successful in the real estate business you have to realize this is not a "get rich scheme".  It is a work smart, consistently and on purpose in everything that you do. It takes time and  you are going to have to work.  If you are  your own boss, would you fire yourself?

We have all of the training to help you reach whatever goals want.  To put our money where our mouth is, we have a Productivity Coach that will help you with your map.

We have been named the #2  training company in the world -- across all industries---by Training Magazine.  We believe in a constant and consistent personal growth plan and we provide the methods and tools for that to happen.  All you have to provide is the work. That sure if easier than  if you had to re-invent the wheel!  We have on-site training, regional training, national training, and international training.  and many trainers that come to us onsite. Agents from other companies come to learn from our trainings.  Everyone is welcome.

We have a youtube channel covering every aspect of any questions that you may have.  We have a contact data base system, a pre-set campaign system to systematically stay in touch with the people in your database.  These campaign can be personalized to you or you can use the canned version.  We believe in saving trees.  Everything is done electronically.

We brand ourselves.  My signs have my picture on them.  You can have your own signs and
marketing materials that promote you and not Keller Williams Realty.  You will not see any advertising, ever, by Keller Williams Realty.  Our philosophy is that we don't want KW to be the "big shot".  We want you to be the big shot.

We all have our own personal search app.  Instead of your clients downloading Realtor.com they can download Pam.com or whatever your name is.  It has some very cool features and if a clients wants more information about a property then can contact you directly from the app.  realtor.com search that you can give to your clients and if they see a property that they are interested in they can contact you directly from the app.  Cool features.  It's is just another perk that KW give us.

Some people say that it is expensive to come to Keller Williams.  We have a $57 a month fee.  That fee covers a number of things.  One of the big ticket items it covers for $15 a month is your errors and omissions insurance. Other companies charge a per transaction fee.  I have heard that that fee is as much as $75 a month.  We don't do it that way. Everyone pays $15 a month right across the board. And, after all, if you are running a business you will want the least cost for the most value.

The other $43 covers all of your technology, database system, website, electronic system and daily training.  That doesn't sound too expensive to me.  I have a sheet that tells you all about it.  When we meet we will go over each detail specifically.

The Board of Realtors/MLS has about a $90 a month fee.  Here at Keller Williams, we bill each agent the $90 or so a month fee along with the $57 fee that goes to us.  We then pay your bill to the Board of about $90.  Some real estate companies only collect the fees when you have a closing.   In my view, that is a very bad business practice.  If you don't have a closing, the owner is stuck with paying your bill.

At KW we want you to pay your bill.  We want you to be a stand up business person that has planned for the future and budgeted your expenses.

Of course, the other reason refers back to me showing you how to earn more than 100% of your commission on every deal.  I teach this class periodically.  Or I will tell you in person when we meet.

So if you want to join the fastest growing company in the world, interview with KW even though you may be thinking of joining another company--just give us a chance.



Pamela Madore
Keller Williams Realty
3955 S Soncy Rd.
Amarillo, TX 79119
806-290-1920













Don't Burst My Real Estate Bubble



I have been in the real estate and mortgage business all of my adult life.  I have seen ups and downs and been a part of all of them.

The first house I ever bought the interest rate was 3%.  I lived in a rural area so it was a subsidized loan.  The second house I every bought the interest rate was 18%.  That is what the market would bear at the time.

So you can see that there were 2 very different interest rates.  When something like that happens,  the price of the of the house needs to be what the market will bear based on the interest rate raises.   For instance, for every 1% the interest rate raises that takes about 8% of the buyers are out of the market.  They really aren't out of the market they just can't qualify for as much.

What happens then is that they don't buy because the type of house they want is to expensive or as a seller in order to keep your house in this buyer pool you are going to have to reduce the price of your house in order to get buyers to look.  Fewer buyers

I mentioned in the title don't burst my bubble.  There are times that the economy changes. I am not an economist even though I find it fascinating.    I just know that the market does shift.  It goes up and goes down.

Between 2006 and 2008ish we had a giant bubble,  I lived in Florida at the time
and I saw prices go up 50% - 80% in 30 days.  A house that was $100K was suddenly $200K  What caused that to happen?  One thing, I think, it is suddenly like a panic and people are out of control buying houses, because what, they don't think there will be any houses left?  It turns into sort of like Black Friday.  

Another thing that happened was mortgage financing was very easy to get,  There were all kinds of crazy programs out there that put people in houses that they were not going to be able to afford  later on.  At the time they did qualify.  There were interest only loans (no principal paid until it adjusted), there were no income verification loans.  There were no income, no asset verification loans. Basically if you could fog a mirror you could get a loan. There were a lot of crazy mortgage programs out there that drove prices up and caused a panic in buyers.

Consequently, when the bubble burst (and what caused that to burst-- I am not an economist) all of the panic stopped and suddenly the prices fell.  I had two houses in Florida and thankfully I sold one.  The other one I made a bad decision and didn't sell when the market was at its peak. Later we had to do a short-sale.

So suddenly I had no job.  I was a Realtor and Mortgage Broker in Florida.   We moved here to Amarillo Texas. there were no more mortgages or houses to sell. Buyers owed more than their houses were worth.  Over a period of time the crazy mortgages started to cause problems.  The adjustable rate mortgages began to adjust.  The interest only loans began to add in the principal and people could no longer afford their homes.  Many had  balloon payments that the buyers couldn't pay so as a consequence they were foreclosed on.

Foreclosures were rampart and short sales were happening just as fast.  Interestingly,  Florida is a judicial state.  That means that in order for a bank to foreclosure they have to actually go before a judge.  There was such a back log that sometimes it took 12-18 months to foreclose and buyers continued to live in the houses for that length of time.

The market has settled down across the country.  We are, however, beginning to see some markets that prices are rising without real justification.   Like Denver.

I am a Licensed Loan Originator and Realtor.  The mortgages available now that
I call Funky Financing are much, much more conservative and you definitely have to do lots more than fog a mirror.  hat I can Funky Financing are much more conservative.  They do things like help people with only an ITIN and no SS number.  There is a lot more documents and a minimum of 20% down payment and their "ratios" have to fit.   It is also for that self-employed person that writes too much off.  They are not a "stated" income loans, though.  There is a worksheet that needs to be filled out.  These loans are much more conservative then they were,  Loosening up a bit. Unusual properties .  Vacant land.

 History shows us that these shifts take place every 18 years or so.  But with the speed of our technology and all things happening at such a rapid pace, that 18 years appears to be tightening up a bit. 

Amarillo is a very conservation town.  We don't have big bubbles.  We have little bumps.  Our average yearly increase 3-4-5-% which is normal and which it should be.

If it gets crazy again,  Realtors and Lenders need to be able to council buyers and sellers better so they are aware of all of the ramifications involved. 

All I can say is, watch out in the next few months to prepare yourself for what is to come.  A good indicator is "time on the market".  How long is it taking for houses to sell?

Contact me and I can give you specific information on your house to sell or if you are buying, then the houses you are interested in.



Pamela Madore
Keller Williams Realty
3955 S. Soncy Blvd.
Amarillo, TX 79119
806-290-1920
http://iloveamarillo.com






Thursday, December 15, 2016

I Want To Set My Own Hours, Come And Go As I Please. And Make Tons Of Money. I Am Going To Be A Realtor

According to the National Association of Realtors, the average real estate agent sells 12 houses a year. There is a pretty good chance that those Realtors came in with the "I Want To Set My Own Hours, Come And Go As I Please. And Make Tons Of Money.  I Am Going To Be A Realtor" attitude.

I know someone that "snickers".  I am inserting a snicker here.  That is my reaction to people that 
believe the big bucks come that easily.  Of course, if you live in a market of multi-million dollar houses, selling 12 a year might be enough.  I will guarantee, though, that an agent who does that works their business.

There is a big difference  between "setting my own hours" and "setting my own schedule".  The agents that set their own schedules can then set their own hours, not the other way around.  Realtors can come and go as they please.  That works as long as you "come" to work and "go" when it is done.  The truth be known, most Realtors would fire themselves if they considered themselves their "boss".

It is very possible to make big bucks as a Realtor.  You have to be willing to work. You have to be willing to follow a repeatable system, being learning based, and work at an outstanding company!

If you are serious about being a Realtor, we are always looking for a few talented people.

Call me for information!

Pamela Madore
Keller Williams Realty
3955 S Soncy Rd
Amarillo, TX79119
http://iloveamarillo.com

Tuesday, December 13, 2016

Remember This If You Are Buying Or Selling An Amarillo Home

Pamela Madore
806-290-1920

CLARITY WHEN BUYING AN AMARILLO HOME

"I didn't think it would be this hard".  That is what my buyer said today as we were looking at houses in Amarillo.  True, he wanted a specific thing at a specific price and that combination is hard to come by.  I blame myself, though, for the statement.  I didn't set expectations.

Setting expectations when you are selling your house or if you are buying a
house is an important part of the process.  Setting expectations and being realistic are really two different things.



If you have a 2000 sq ft house that was built in the '60's and has had no updates and you want $500,000 for it, at least here in Amarillo, is unrealistic. If you are a buyer and you want a 5000 sq ft house with $5000 down and a payment of $600, that is also unrealistic.

On the other hand, setting expectations would be more along the lines of explaining the limited amount of houses that meet your criteria and the importance of making a decision quickly.  Setting a seller expectation might be explaining that if we have no showings in the first 10 days, or more than 3 showings and no offers, we need to lower the price.


Unfortunately, I sometimes forget that my seller or my buyer doesn't have a good of understanding of how this whole process works and if i don't set expectations, there could be disappointment, confusion, and frustration.

Whether you are selling your Amarillo house or buying an Amarillo house, you need expectations set.

Let's make sure your expectations are properly set. Call Today!

 

Pamela Madore
Keller Williams Realty
3955 S Soncy Rd.
Amarillo, TX 79119
806-290-1920
http://iloveamarillo.com

Friday, December 9, 2016

How To Buy A $270,000 House With Less Than $10,000 Down Payment-FREE REPORT



You may be thinking, "what's the catch?"  There is none.  This is perfectly true.


Most people think of FHA loans as for first-time home buyers or for people that are buying less expensive houses.  Not true.  In Potter/Randall county the maximum loan limit is $271,050.  FHA is not just for "poor people".  It may be for people that want to get into an expensive house using less of their cash.

To get the complete report visit  http://10000-downpayment.iloveamarillo.com/


Pamela Madore
The Pamela Madore Group
Keller Williams Realty
8o629o192o

Thursday, December 8, 2016

5 Things This First Time House Flipper Learned The Hard Way

Pamela Madore
Keller Williams Realty
806-290-1920

5 Things This First Time House Flipper Learned The Hard Way



When you have been around the mountain a few times like I have,  you learn a few things.  Sometimes it takes more than once.  I have often been a "re-inventer" of the wheel so I suppose pretty much everyone else does the same thing.

Recently, I found a nice little house for a first-time rehabber.  We got it right and I got him the financing.  I told him a couple of things.  One was that he should be aiming at making $5000 on his first rehab---knowing he would make some mistakes.  The other thing I told him was to do a good job but don't overspend because of the area.  We were topped at resale price in the area.

Here are 5 things he learned----


  1. I told him to aim at making $5000.  He aimed at making $20,000.  He was a little drunk on the perceived profit and thought for sure he knew what would be the things that buyers wanted.  He was instead thinking about what he would want.  He likes granite.  I told him laminate. He overspent.
  2. Cheap is usually more expensive.  In an effort to try and save some money he hired an "off the books" electrician to fix some electrical things. He did things like put the switches to lights behind the doors instead of beside the doors.  Those things all had to be reworked.  When the inspection was done by the eventual buyer, he had to hire an "on the books" electrician to fix the problems and then to also fix the problems the "off the books" electrician made.   Made a big hole in his profit.
  3. It took 90 days to do a simple rehab.  He hired people that were "cheap" but unreliable.  I will admit they did a good job but you just never knew when they would show up.  I think a couple of them got delayed by a short jail term.
  4. Pay attention to the details as much or more than the big things.  For instance, mow the lawn.  that often brings more value to the property than granite.
  5. Don't get greedy.  Rehabbing is a simple business that you need to learn by following a model.  Be realistic.  Don't count your money before you have it.
He will do better next time.  It is all a process.  I know a professional rehabber.  He does things like uses the same tile and the same paint in every house.  Then there is no waste.  These are simple things but in the end are great money savers.

Oh.  By the way, he made $5000.


Pamela Madore
Keller Williams Realty
3955 S. Soncy
Amarillo, TX 79119
http://iloveamarillo.com
806-290-1920



Monday, November 28, 2016

It's Christmas Time! My House Is For Sale. To Decorate or Not To Decorate?

Pamela Madore
Keller Williams Realty
806-290-1920
http://iloveamarillo.com


It's Christmas Time! My House Is For Sale.  To Decorate or Not To Decorate?

Everyone says that buyers love the looks of a house all decorated nicely for Christmas with all the lights and smells.  A nativity scene with all the camels and what-not along side the fireplace with a blazing fire is comforting.   And then all of the presents wrapped with bows under the tree wrapped with matching paper and stacked evenly.

The outside of the house is all lit up!  There are lights on the eaves and Santa on the roof top.  The front yard has lighted candy canes and dancing reindeer.  What a beautiful Christmas! Says the buyer.

Here is the seller.  I am going to spend hours putting all of that up and someone is going to want to buy in time for Christmas.

 


Timing.  How long after Thanksgiving do you wait until you decorate?  Now that is a strategy -- because if it takes 30-40 days to get financing, then you are pretty safe to decorate and have it remain intact until after Christmas.  :-)  Let's say maybe on December 3rd to be safe.  Of course, the buyer may have cash.  *sigh*



Oh wait.  The family is used to putting the up the tree and all of the decorations the day after Thanksgiving.  :-(   We then run the risk of spending hours with all of the decorations only to have to take them all down two days before Christmas.  And, of course, we bought a house so now we have 1 day to reassemble. 




I'm a buyer.  "Oh how pretty".  I'm a seller.  "What the heck?"







Right now I have a seller that is closing on their house on Dec. 28.  Decorate or not?



Pamela Madore
Keller Williams Realty
3955 S. Soncy
Amarillo, TX 79119
http://iloveamarillo.com
806-290-1920
pam@pinkhouseteam.com

Saturday, November 26, 2016

Use My Lender and Lender Fees Are Waived! 3117 Fleetwood

Pamela Madore
Keller Williams Realty
806-290-1920
http://3117fleetwood.iloveamarillo.com
Owner/Agent

3117 Fleetwood Drive
$158,000


Yup it is true.  The lender will waive lender fees which will be a great savings for you!  I will even chip in some so it is possible to get into the house for under $7000!

It is a townhouse but has no maintenance fees.   We share a common wall with one other townhouse.  
3117 Fleetwood   Great Room

Our townhouse is surprisingly big at 2902 sq ft.  The great room is really GREAT!  We have 3/2.5/2 with a separate office and two patios.  All tile except bedrooms.  The master bedroom is right around 15' x 18' .  His and hers walk in closests.  




It is laid out perfectly for two masters each with their own office/sitting room and patio. 

Come on over and take a look!

Pamela Madore
Keller Williams Realty
3955 S. Soncy Blvd.
Amarillo, TX 79119
806-290-1920
http://iloveamarillo.com
Owner/Agent

Friday, November 25, 2016

New Year? New Career!

Pamela Madore
Keller Williams Realty
806-290-1920


Keller Williams Realty is an awesome place to work.  We love each other like family--with little tits and tats now and again.  But our culture of giving cannot be outdone

Keller Williams Realty has been named by Training Magazine as the #1 training company across all industries in the world.  If you want real estate training, personal growth, and unlimited potential we are the place to be.

Keller Williams Realty is an International Company so you join me at KW in Amarillo and then move to a different country and expect all of the same values, systems, and models.

Keller Williams Realty is build by agents for agents.  We promote ourselves and our businesses.  That is why you see different signs for different agents from KW.  We brand ourselves.

Keller Williams Realty is game changer.  New Year?  New Career!!!

Contact Me for more information
Visit http://joinkw.iloveamarillo.com.

Wednesday, November 23, 2016

Don't Let The Fear Of Foreclosure Cause You To Bury Your Head In The Sand

Pamela Madore
Keller Williams Realty
806-290-1920



Don't Let The Fear Of Foreclosure Cause You To Bury Your Head In The Sand


I have a tendency to bury my head in the sand when I have a difficult problem that really needs addressing.  I know it is not the right thing to do but sometimes it is hard to face the cold hard facts.

It is not always easy to see in the future but it is mostly true that you can "feel" what may happen.  

So with my head in the sand, I had to do a short-sale on a house I owned. That is just one step less than a foreclosure.  In hindsight (Monday morning quarterback) if I had just thought about it and not waited until it was too late, I could have sold the house.  I might not have made 5 cents but at least I wouldn't have that on my record.

Lesson learned.  The hard way.

If you can "feel" a future problem with your house, don't wait.  Maybe income changes or expense changes or maybe the house needs more work than you can afford to do.  

Do something about it NOW.  Just making a pro-active decision  will make you feel 1000% better.  Trust me.

If this is you, or anyone you know that needs a favor, call email or text me. Please don't be embarrassed.   I have been in your shoes and I know how it feels.  

Your situation is confidential.


Pamela Madore
Keller Williams Realty 
3955 S Soncy Rd
Amarillo, TX 79119
806-290-1920
pammadore@kw.com



5 Reasons Your Dream House Told Me To Give You A Call!

Pamela Madore
Keller Williams Realty
806-290-1920



5 Reasons Your Dream House Told Me To Give You A Call!





  1. You have been on the fence long enough!  Your dream house is waiting for you and it is time you came to see it.   It is exactly what you are looking for.
  2. Stop riding up and down the streets looking for
    your dream house by yourself! Let me save you gas and I will find it for you.
  3. Just because you don't think you can buy your dream home because you don't qualify doesn't mean that you actually can't.  Let me show you how you can.
  4. You think that the market is bad and it isn't a good time to buy.  Your dream house is available 24/7/365.  It doesn't matter what the market is doing.  Your house is still there.
  5. I am calling you because you didn't call me!  How else am I going to tell you about your dream home if I don't call you?

Those are 5 solid reasons for me to call you and tell you about houses.  So expect my call today!

Pamela Madore
Keller Williams Realty 
3955 S Soncy Rd
Amarillo, TX 79119
806-290-1920
pammadore@kw.com
http://iloveamarillo.com  
 




Why Are Closing Costs So High When Buying A House?

Pamela Madore
Keller Williams Realty
806-290-1920


Why Are Closing Costs So High When Buying A House?


That is a very good question.  I spoke with a buyer today that was hesitant in making an offer on a $150,000 house because his closing costs were going to be $8000.  What could possibly cost $8000!

Often times the closing costs are more than the down payment.  This is especially true on an FHA mortgage where the down payment is 3.5%. 


Let's look at what some of these closing costs and other expenses are.  Most of these are paid at closing but not all of them.

Your first expenses will be any inspections or tests that you may have done on the house that you are buying.  These can range from $250 to as much as $1000 depending on what type of inspections you desire.  Generally speaking the average for a home inspection including a termite report is about $350. 

Your next expense will be the cost of the appraisal.  The appraisal is the one that tells you how much the house is worth.  Currently, appraisals cost about $500.

You will need a survey of the property.  It is possible that the seller has a survey but if not you will have to have one.  The survey tells you where the property lines are and currently run about $500 for a house lot.  If you are in the country and buying an acre or more that number will vary.

Who is keeping track?  We are somewhere between $1350 and $2000.

Another big expense you will have is your homeowners insurance.  The lender will require that you pay for it one year in advance and place 2 months in your escrow account so that when the bill comes the next year you will have enough in it to pay for the following year.  Let's say your insurance is $2000 per year.   That would come to a total of $2,333 for your homeowner's insurance.

Now let's say that the taxes on the house are $2500.  The seller will be responsible for the taxes until the day of closing and you will be responsible for the rest of the year.  That is figured differently depending on the month of the year you close.  The tax bills come out November 1.  But for our purposes with the prorations and accounting for when your first payment is due, you will end up putting about 3 months worth of taxes in your escrow account.   That is $625.

Who is keeping track?  We are now between $4308 and $4958.

Now we move into lender fees.  Not all lenders charge exactly the same thing but most are very similar.  These fees include things like a lender title insurance policy, underwriting fees, processing fees, attorney fees, and a few other incidentals depending on the lender.   My best guess would be that  these fees would equal about $2000.

Lastly,  we are at the title company to close.  Their fees range from $185 to $250 depending on the title company you use.  

Who is keeping track?   Now we are ranging on the low side at about $6500 and on the high side about $7200.

In my example above, the buyer also had to pay for his own title insurance policy (typically a seller expense) of $1180.

So doing all of these numbers, you can easily see how you can get to $8000
pretty easily.  The two things that have the greatest variables are the cost of the homeowner's insurance policy and the amount of taxes on the property.

I hope this breakdown has helped you understand how this all works.  As a Realtor representing you, a buyer, I will negotiate and have the seller help with closing costs.  

Let me give you an estimate of closing costs for the house you choose with me!


Pamela Madore
Keller Williams Realty
3955 S Soncy Rd
Amarillo, TX 79119
806-290-1920
pammadore@kw.com