Price and cost are two very different things in real estate, and any REI who’s been around for more than a few transactions can tell you that—but if you’re just starting out, here’s what you need to know about price vs. cost.
Price in a Real Estate Transaction
If the price and a real estate transaction is the flat-rate amount you pay. If you buy a property for $75,000, for example, that’s the price. The cost, however, is very different.
Cost in a Real Estate Transaction
The true cost of a real estate transaction includes the price and several other figures. When you’re calculating the overall cost of the transaction, you’ll need to factor in:
- Labor costs
- Material costs
- Fees for permits and licenses
How to Make Sure You’re Not Losing the Price vs. Cost Battle
It can be tempting to look only at the price of a property, but you need to look of the overall cost before you jump into a real estate transaction. Otherwise, you run the risk of slashing your profits and costing yourself far more than you should.
Be smart. Create your budget before you make an offer. Create limits and stick to them, and don’t overspend.
Do You Need a Hard Money Loan in Atlanta?
If you’re looking for a hard money loan in Atlanta, we may be able to help you.
Call us at 404-814-1644 or contact us online to find out whether you might qualify for this type of funding. In the meantime, check to ensure that you meet our loan criteria. Our loan amounts can be up to 65 percent of the after-repaired value of the collateral—and if you use the loan for renovation or construction, the loan amount can be based on the collateral’s improved value.
Read our frequently asked questions and take a few minutes to learn about the hard money loan process.