Whether you’re looking to buy your first home, or trading up to a larger one, there are many costs – on top of the purchase price – that you must figure into your calculation of affordability. These extra fees, such as taxes and other additional costs, could surprise you with an unwanted financial nightmare on closing day if you’re not informed and prepared.
Some of these costs are one-time fixed payments, while others represent an ongoing monthly or yearly commitment. Not all of these costs will apply in every situation; however it’s better to know about them ahead of time so you can budget properly.
Remember, buying a home is a major milestone. Whether it’s your first, second or tenth home, there are many important details to address, during the process. The last thing you need are unbudgeted financial obligations cropping up hours before you take possession of your new home.
Read through the following checklist to make sure you’re budgeting properly for your next move.
1. Appraisal Fee
Your lending institution may request an appraisal of the property which would be your responsibility to pay for. Appraisals can vary in price from approximately $175 -$ 325.
2. Property Taxes
Depending on your down payment, your lending institution may decide to include your property taxes in your monthly mortgage payments. If your property taxes are not added to your monthly payments, your lending institution may require annual proof that your taxes have been paid.
3. Survey Fee
When the home you purchase is a resale (vs. a new home), your lending institution may ask for an updated property survey. The cost for this survey can vary between $250- $1,000.
4. Property Insurance
Home insurance covers the replacement value of your home (structure and contents). Your lending institution will request proof that you are insured as it protects their investment on the loan.
5. Service Charges
Any new utility that services your hook up, such as telephone or cable, may require an installation fee.
6. Legal Fees
Sometimes the simplest of home purchases will require a lawyer to be involved to review all paperwork.
7. Mortgage Brokers Fee
A mortgage broker is entitled to charge you a fee in order to locate a lender and organize the financing. However, it pays to shop around because many mortgage brokers will provide their services free to you by having the lending institution absorb the cost.
8. Moving Costs
The cost for a professional mover can cost you in the range of $50-$100/hour for a van and 3 movers, and10-20% higher during peak demand seasons.
9. Maintenance or Home Owners Association (HOA) Fees
Condos and some Home Owners Associations charge monthly fees for common area maintenance such as grounds keeping and pest control. Costs will vary depending on the community and what services it provides.
10. Water Quality and Quality Certification
If the home you purchased is serviced by a well, you should consider having your water checked by your local experts. Where you live determines whether or not a fee is charged to certify the quantity and quality of the water.
11. Local Improvements
If the town you live in has made local improvements (such as the addition of sewers or sidewalks), this could impact a property’s taxes by thousands of dollars.
12. Land Transfer Tax (Doc. Stamps)
This tax is applied whenever property changes hands and the amount that is applied can vary.
We never want our buyers to be taken by surprise by any unexpected fees or costs associated with purchasing a property. We hope this report has shed new light on items you may not have been expecting or served as a good reminder of what to expect before you close on your next home.
If you have any questions about this article, or would like to set up a time to speak with David Gallup, please email me or call our office at 407.629.6330 x 353. We’d be glad to help you.
Century 21 realty is second to RE/MAX realty in Orlando real estate. taylormorrison.com is one website, buyerbroker.com is another. tollbrothers.com can help find ryland homes for you as well as trulia.com and coldwell banker. There are many others, such as floridamoves.com and orlandorealestate.coml Not to overlook forsalebyowner.com and owners.com or salebyowner.com, which are many of the sale by owner options. But none of them can top RE/MAX. And don’t even think about a FSBO or you will lose a lot of equity