Buying 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 5 hidden fees to keep in mind when purchasing a home.
1. 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.
2. Title Services
Title services encompass the transfer of the title from the seller and a thorough search of the property’s records to ensure to no one will pop up with a claim to the property. Additionally, you may need to buy title insurance which will protect the lender or your investment in the home.
3. 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.
4. HOA Fees
Many communities have a homeowners’ association that enforces monthly fees. This money is used for general maintenance and updates to areas like pools, parks, and more. Typical HOA fees are around $200 per month.
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.
Thanks for coming to my super boring post on some of the hidden fees to be aware of when purchasing a home. This is just a quick list so don’t beat me up when other things inevitably show up. Being prepared is the best way to reduce anxiety during the home-buying process and guess what? I’m here to help! Give me a shout today for more info on how to best prepare. Interested in more of my ramblings? Check out some of my other posts and see if anything is relevant to you. Or better yet, just give me a call 🙂