Home purchasing involves more than the sale price of the property. Many buyers are familiar with costs such as a property survey, attorney fees, and homeowner association (HOA) fees. However, let’s take a look at some expenses that potential buyers may overlook. Check out the home buying process.
Closing Costs
Great you found a home and have the down payment saved, but you will need to pay some closing costs to an attorney or title company the day of closing. Typical closing costs will include a property survey, lender charges or points, lender origination fees, escrow charges, prepaid property insurance, and government recording fees. The national average is approximately $6,000 or 2-5% of the loan amount.
Moving Expense
Many people will have friends and family help with the moving costs and rent a moving truck. That’s great if the move is a short distance and friends and family are available. There will still be the cost of a rental truck, packing materials, and boxes. The current price of a long-distance move of more than 100 miles is between $2,200-$5,700.
Remodeling and Renovations
When you purchase a home, there may be areas that need attention immediately. Flooring, painting, and appliances are areas that some buyers will replace or upgrade upon purchasing.
Home Inspections
Don’t overlook this critical step in the buying process. Spending $300-$600 on an inspection could save you thousands of dollars in the future. Some buyers are waiving the home inspection in this market of low inventory. Make the inspection period short, 3-5 days but get one.
Title Insurance
The state regulates title insurance costs in Florida. The first $100,000 of the purchase price costs $575, and each additional $100,000 is $500 or a portion thereof. The seller may pay this cost or split it equally between the buyer and seller. Title insurance cost is negotiable between buyer and seller during the offer and acceptance period.
Summary
Please check out 5 critical steps to purchasing a home. If you are thinking of buying or selling a home, please call me at (941) 799-9440 or contact me. #edcurryrealtor #listwithme #bradentonhomeseller #sarasotahomeseller #manateerealtor #listwithed #listwithedcurry #listsarasotahome @edcurryrealtor www.edcurryrealtor.com
