Owning a home is a lovely thought, especially when you have sufficient funds. Since buying a home is a big financial commitment, you should be as financially ready as possible before you make this major decision.
One common mistake of homebuyers is assuming that home purchase only entails the actual price tag of the home they are buying when in fact, there are a lot of hidden costs associated with it. Since these hidden costs are major expenses, you can’t just go buy a home without factoring them in and making sure that your funds are enough to pay for them.
Here are some examples of expenses that pop up throughout the home-buying process:
Bond Registration and Transfer Costs
These are some of the biggest costs associated with buying a home. Since most banks today are less likely to give homebuyers 100% bonds and incorporate transfer costs, you must ensure that you have funds in place for this important part of the home-buying process.
Appraisal Fee
This fee pops up as part of the loan approval process and is something you should pay out of your pocket. It goes to the person who evaluates the market value of the property you are buying. You can pay this as a fixed fee or based on an agreed percentage of the property’s worth. If you are buying a home in Jensen Beach FL, the average appraisal ranges from $400 to $500.
Professional Home Inspection Fee
You pay this fee once the inspection of your property has been completed. In Florida where sizes of homes are typically 1600 to 2000 sq. feet, professional home inspection fees usually range between $300 and $600. However, this could skyrocket if the home is old because older homes have more issues compared with newly-built homes. If you are going to have your home inspected, you should hire the services of a company with a general inspector who knows electrical, HVAC, and plumbing so you won’t have to pay for the specialized services of professionals like structural engineers, termite experts, and more.
Moving Costs
The most taxing part of having a new place is having to transfer all your stuff from your old home to your new home. This also involves a huge amount of money since you need to hire a moving company to get all your things into your new home.
General Repairs, Upgrades, Maintenance
Moving into your new home does not mean that the expenses are over. Once you have moved in, you will still have to do some cleaning and general repairs to make your new home feel more like home. The amount you’ll spend for the repairs and maintenance will heavily depend on the condition of the home and your standards.
Homeowner’s Association Fees
Especially if your home is located in a subdivision, you are likely required to pay your monthly or annual homeowner’s association fees. Homeowner’s associations usually require this fee for the upkeep of shared areas in a subdivision, such as a park or a clubhouse.
These are just some additional expenses you should prepare for when buying a new home. Remember, homeownership is not just about the cost of the home and the interest rate you get on the loan—it also involves major hidden costs.
If you are looking to buy one of the homes for sale in Jensen Beach FL and want to have a better understanding of the fees you need to prepare for throughout the buying process, contact me today at 772-240-2589! I am Melissa Conrad, Jensen Beach FL’s top Realtor®!