• Post last modified:October 5, 2020
  • Post category:Insurance


So we are all aware that purchasing a home, whether it’s your first or fifth, is going to be one of the most costly investments you’ll ever make. Now the goal of investing in a home is that one day it’s value will increase significantly, in which case you can sell it for a hefty profit and move to warmer climates come retirement. But lately that hasn’t been the case.


With the housing market seeming to barely make any improvement recently, real estate, at first, doesn’t seem like a great idea, but in actuality, there could not be a better time to invest.  It’s the most basic of all philosophies when talking about finance: buy low and sell high. So with that all in mind, if you’re looking to purchase a home, there’s a few other costs that many of us don’t think about which can really add up.  Here’s what we’re talking about:

Representation: Having an agent present while going through the process of purchasing a home can be a very valuable resource.  They have the answers to your questions and the resources you may need to close out the deal.

Down Payments: Ah, the down payment, how you have fooled so many. While the craziness of sub-prime lending is behind us, down payments now play an increasingly significant role in the purchase process.  While some of us think that 20% of the total cost is required, it’s often not that high. But still it is significant and you need to analyze your finances to see if you have that type of liquidity.

And EMD: A What? It’s called an “Earnest Money Deposit” and it’s basically a way to entice a seller into accepting your bid price.  The offer you give to the selling party is accompanied by an EMD, so for instance the down payment of $20,000 may include a $5,000 EMD, meaning you’d only have to provide the difference ($15,000) at closing. 

Stay tuned for Monday’s blog when we reveal the other costs of purchasing a home besides, you know, the whole mortgage thing.  Have a great weekend from all of us at your Connecticut homeowners insurance agency, Paradiso Insurance.