Purchasing a home is arguably one of the biggest financial decisions you will make in your lifetime. As you start your hunt, don't forget there will be other costs associated with your purchase than the price of the home.
Here are 5 fees to keep in mind as you begin to budget.
Home inspection. This is a crucial step in the home buying process. The findings that come from the inspection can help you negotiate price and repairs. Generally, you can expect to pay anywhere between $300 to $700 depending on the home and the location.
Title services. Title services encompass the transfer of the title from the seller and a thorough search of the property’s records to ensure to no one will pop-up with a claim to the property. Additionally, you may need to buy title insurance which will protect the lender or your investment in the home. This is usually a percentage and it's easy to figure out, you can ask your REALTOR® or use this calculator here.
Appraisal fee. Before getting a loan, you will likely be required to get an appraisal of the home to determine its estimated value. This will be conducted by a third-party company and the cost can land anywhere between $300 and $1,000, depending on the size of the home.
HOA fees. Many communities have a homeowners’ association that enforces monthly fees. This money is used for general maintenance and updates to areas like pools, parks, and more. Typical HOA fees are around $200 per month, but can be much higher for luxury properties or upscale neighborhoods. This is something that your REALTOR® can help you find out as well.
Taxes. The taxes each buyer pays at the closing table differ, but it is not uncommon for it to be up to two months’ worth of county and city property taxes. Additionally, there may be taxes for the transfer of the home title. Make sure that whatever Taxes the old owner was paying did not have special deductions that do not apply to you, if there are, this may end up raising your Texas exponentially once you get the house.
We hope the above information helps you!
For more information on Real Estate, buying, selling or investing, don't hesitate to reach out, we would love to help!
Gabriel and Kristina
The Zachary Team and San Antonio's REALTOR® Couple