Did you know that 44% of homebuyers report that they don’t know all the costs associated with purchasing a house? I was just reading about this, so I thought it would be a good idea to review five hidden home-buying costs you may not know. Watch this short video for details!

Hidden Costs of Buying a Home.

Home Inspections

Home inspections is the first one. There are lots of people involved in a transaction and inspectors are one! These are typically going to run from about $300 up to about $600. It depends on the location and size of the home. It’s also going to depend a little bit on whether you need any other specific inspections doing on the house that you’re buying. For example, you might want to pool inspection, you might want a specific inspection for a well or a set tick tank or a mold inspection. Things like a general inspection and pest inspection, pretty much everybody’s going to do. We always do recommend you get a home inspection professionally completed and get it done in a timely way. One resource for inspectors is your local ASHI group, or other home inspection professional organization.

If there’s anything comes up from that, you’ve got time to bring in any other professionals that you might want some professional advice from- whether it’s electrics, roofing, plumbing, that kind of thing. If you’re thinking of downsizing, or retiring, there are additional things to consider first

Title Insurance

The second thing on this list of hidden costs of buying a home is title insurance. I think a lot of buyers actually don’t understand what title insurance even is. Basically it’s an insurance policy that protects your right to own that property.

The cost of that in Florida comes directly from a title insurance rate sheet, and it’s tied to the price of the home. So as soon as you are looking at homes, we can come up with what’s the approximate title insurance rate that you will be paying as part of that closing cost. All title companies are working from the same rate sheet. So honestly, that’s not an expense that you can shop around to get at a different rate.

Closing Costs

Across the nation, these typically range from between about two to five percent, it does vary though a little bit. The national average is about $6,000, but quite honestly, though, these costs should be included on an Estimated Net Sheet.

You should be provided with an Estimated Net Sheet by your agent before you go under contract. We always make sure to go through an estimated net sheet when we’re doing our buyer consultation, partly because then you’re not going to get any shocks. You know, we don’t want any surprise expenses coming up like that. It gives you an idea of what those expenses, ballpark, are expected to be. So no surprises later on.  Ask for that from your agent.

Renovations, Furniture and All that Fun Stuff

Potential renovations is something else to bear in mind. A 2017 survey found new homeowners spent an average of about $10,600 on furniture appliance and home repairs in that first year.

It’s definitely something you’re going to want in the budget. Unless you’re moving into a home, that’s absolutely ready to go, and already own everything that you’d want to put into it! Now, quick reminder though if you’re getting a mortgage: please, please, please do not go out to all the local furniture stores. Don’t let them pull your credit while you’re browsing.  We hear of people doing that, yet your lender- can pull your credit it right up to the time of closing. Even though in the store, they’re saying, “No, no, it’s fine- Just go browse, we’ll just pull your credit for when you’re ready”. No, no, no. Don’t let that happen.

Moving Costs.

Moving costs is on this list too of hidden costs of buying a home. The national average cost of moving is about $1,400, but the range is from about a $800 to $2,150 for a two person team doing a local move (that’s a move of about a hundred miles or less). 

The average cost for a long distance move can be anywhere between about $2,200 and $5,700, it can be great to have that help. So you might want to factor that in! 

What about a New Construction Home?

If buying a new construction home is a possibility there are additional things to consider. Some of those come with expense, such as home inspections. Be sure to go with YOUR CHOSEN AGENT right from your first visit to the model center to make sure you have representation as this can be a money saver in this process and it’s at no additional cost to you. (Don’t jeopardize your representation by going alone). Simply “going to look” doesn’t cut it with the builder! Many new communities like Starkey Ranch and Del Webb at Bexley also have additional fees like CDD fees that many buyers don’t know about or understand.

If you like this video, you might want to check out some of our other videos. And as always, if you’ve got any questions or feedback, you can always reach out to us directly at 727-408-6000 we’re here to help and we’ll see you on the next video!

Sources: Realtor.com, Forbes, National Association of Homebuilders