There are some costs of buying a property that you might not be factoring in when it comes time to buy your own property. Today, I’m going to go through a few of them with you to make you a more informed buyer who won’t get caught off guard.
1. The cost of the home inspection. An inspection is necessary to make sure there aren’t any hidden issues with the property. An inspection typically costs a few hundred dollars—$400 to $500 is a good planning range to get a good inspector. The inspection is also a good time to have your home tested for things like radon, which can add between $100 and $150 to the inspection. Click here to see an article on choosing the right inspector.
2. Set aside some extra cash for escrow. A lot of lenders require you to escrow your taxes, meaning they may require you to put a year’s taxes in escrow. They may cause you to have to prepay your insurance for the year or even charge origination fees and a fee for your appraisal, if necessary.
An inspection typically costs a few hundred dollars.
3. Don’t forget about the cost of the move! Unless you have a bunch of friends who are willing to help for cheap, this may cost you thousands of dollars if you have to hire a moving company.
4. Miscellaneous costs. This includes such costs as changing your furnace filter, a fireplace inspection, maintaining your HVAC system, etc. Inevitably, something will break. You may want to consider either purchasing or asking a seller to purchase a home warranty, which would give you at least a year of coverage.
If you have any questions about this, please feel free to reach out to us. We’d be happy to sit down with you and do a consultation to help explain how this all works.