Many buyers don’t realize how expensive purchasing a house may be. While it is great to pay towards your own equity instead of someone else’s each month, buyers should know that going into the process may cost more than they realize.
Gas. Shockingly enough, finding a house in today’s market will eat up a few gallons of gas with all of the driving around from home to home.
Home Inspection Fee. It is a good idea to get a qualified home inspector out to the house during your inspection period time. The inspector will point out any hazards and things needing repair. Costs can range between $300-500 depending on the size of the house. Should any other issues come up, you may need to consider a specialty inspector, like a termite or septic inspector for instance.
HOA application fees. Depending on the HOA, fees can be as little as $25, or as costly as $300. These fees are for the buyer to apply to be accepted into the HOA. Also while on the subject, make sure before writing that check to see what the HOA restrictions are and if it will be a problem for your circumstances.
Closing fees. The lender may require the taxes be paid upfront for the 1st year, or that buyers have a specific amount as down payment. Homeowner association fees and taxes have to be prorated back to the seller if they were prepaid.
Appraisal. The lender is going to require an appraisal to assure the home is worth what the contract says it is. This cost can be upwards of $500.
Survey. The lender will also require a survey, should a recent one not be available. That is going to cost upwards of $300.
Moving costs. Professional movers can cost thousands. Closing dates may not align perfectly when a buyer needs to be out of their old house and can get into their new one. Buyers may need to find temporary housing should they be in the situation where they need a place to live. They may need to keep their moving truck for an extended duration or have a storage unit, all of which = $$$. All of these unexpected costs can add up to thousands of dollars if one isn’t careful.
Repairs. Buyers may notice appliances not functioning shortly after the sale, or leaks in the roof. Unexpected issues come up, but when moving into a home where you are unfamiliar with many of the conditions, repairs can snowball due to prior seller’s neglect. That is why it is important to invest in a home inspection.
