Purchasing a home is arguably one of the biggest financial decisions you will make in your lifetime. As you start your hunt, don't forget there will be other costs associated with your purchase then the price of the home. Here are 7 fees/expenses to keep in mind as you begin to budget.
Home inspection. This is a crucial step in the home buying process. The findings that come from the inspection can help you negotiate price and repairs. Generally, you can expect to pay between $300 to $500 depending on the home and the location. There may also be additional inspections required by your lender depending on the type of loan you are getting and property you are purchasing.
Title services. Title services encompass the transfer of the title from the seller and a thorough search of the property’s records to ensure there are no liens or claims to the property from another party.. Additionally, you may need to buy title insurance which will protect the lender or your investment in the home.
Appraisal fee. Before getting a loan, you will likely be required to get an appraisal of the home to determine its estimated value. This will be conducted by a third-party company and the cost can land anywhere between $300 and $1,000, depending on the size of the home.
Realtor Administrative/Processing Fees. Some brokerages charge the Buyer at closing an administrative or processing fee. Please ask your Realtor if they charge any additional fees to you at closing.
HOA Fees. Many communities have a homeowners’ association that enforces monthly fees and typically charge the purchaser a new member fee.. This money is used for general maintenance and updates to areas like pools, parks, and more.
Taxes. The taxes each buyer pays at the closing table differ, but it is not uncommon for it to be up to two months’ worth of county and city property taxes. Additionally, there may be taxes for the transfer of the home title.
Homeowners Insurance. You'll definitely want to get homeowners insurance, which will typically cover you if your roof gets destroyed by a tornado, if your plumbing breaks and floods your basement, or if someone breaks into your house. Insurance quotes depend on multiple factors, including the value of your home, your insurance claim history, and the deductible you choose.
Buying a home is a great investment, but make sure you understand the costs involved. You should be prepared for the various expenditures that you will have to cover before you ever dip your toe into the real estate market.
To avoid being blindsided by any of these costs, it’s a good idea to do your research and ask a lot of questions to both your Realtor and lender.
Our professionals will be able to help you plan ahead for the different costs you will face and give you guidance to your market and the cost of the homes at which you are looking.
Contact us today at 937.378.3800 so that we can talk about your goals and help make the dream of home ownership become a reality for you!