The most important step to buying a home is to consider what you can afford. Take an honest and clear decision on what to buy. Everyone deserves the biggest and the best; only a few can afford to buy their dreams. And if you want to prevent frustration and dissatisfaction in the process later on, now is the time to grasp the truth of your buying power.
The average real estate fee is two to six percent of the sale price in most markets. That means you would have to pay a commission of $24,000 ($400,000 times six per cent) if you sell a house for $400,000.
On a $400,000 sale, that might not seem like a lot of money. But here is where it's important to remember that while the commission is based on the property's selling price, it's actually paid out of your home equity.
