Hidden Costs to Avoid in Real Estate

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I recently had a conversation with a colleague about a struggle one of his clients was having. It was in regards to hidden costs, and their buyer did not know about some of the fees and charges associated with a home purchase. We always try to educate our buyers and sellers on these types of expenses so there are no surprises when it comes time to buy.

If you’re considering buying a home, we’ve got great news for you today. We are going to go through the four main expenses associated with a home purchase that many people forget. By having this knowledge, you should be able to navigate your home purchase better. Here’s what you should know about:
 
1. Property taxes
Property taxes will vary from state to state, but generally they are 1-2% of the total property value.

2. Homeowner’s insurance
This is something you have to have in case of fire, inclement weather, or disaster striking down your home.

3. Closing costs
Generally, closing costs are a singular part of the transaction, but for them, you’ll want to factor in things like appraisals, title company charges, recording fees, as well as processing or mortgage fees.

4. Repairs
If you’re buying a previously owned home, There are going to be some issues with repairs, whether it be the roof, the furnace, the cosmetics of the home, or something else entirely. Every home ages over time, so it’s important to know what you’re buying before you commit.

All of these costs come with the joys of homeownership. If you have any questions for us about what you should be putting aside for your purchase, give us a call or send us an email. We would love to hear from you.