Beware these costs you might not anticipate before you buy.
How much money do you need to buy a home? We’ve gone over the obvious things like the down payment and closing costs, but there are a few unexpected costs that you need to budget for as well. I want to share five of these costs that might sneak up on you:
1. The appraisal. You’ll have to get one of these during the transaction. They can cost anywhere from $400 to $600.
2. The inspection. Your home inspection can range anywhere from $300 to $800. It depends on the size of the house and if it has items that need to be inspected separately. You may also have to pay a termite inspection which can cost between $85 to $100.
3. The appraisal gap coverage. This is especially an issue in our market. You might have to make an offer above what the home will appraise for to win a multiple-offer situation, so having some money set aside to pay appraisal gaps can help you be more competitive in today’s market.
4. The move. Boxes and moving companies can get expensive. We have some great resources to help you with this, but you’ll have to budget some money for it.
5. Costs after escrow. After the close of escrow, you’ll have to pay deposits to set up utilities, hire a locksmith to change the lock, and take care of some basic maintenance from the inspection.
If you have any questions about this or other real estate topics, feel free to call us. We’d love to hear from you.