For many, purchasing a home can be a very exciting time in their lives. Understandably, many find out that the process of purchasing a home is a little more daunting than they expected it to be. Perhaps the most frustrating thing about the home-buying process is finding out exactly how much you're going to pay for the home. Many want to know how much they're going to pay in order to figure out their monthly payments. Therefore, the following list includes some of the most common fees associated with buying a home.
After everything is set and done, you are going to receive what is called a deed from the previous owner. This is a document that is handed to you to legally transfer the property ownership to you. Along with this service of handing over ownership, you are also purchasing a title insurance policy for the lender. This insurance policy protects you from any lawsuits that may come your way from people declaring a claim on the property.
Although most home sellers will provide you with an inspection report, it's not wise to place all your trust in it. Unfortunately, there are many sellers out there who will forge these documents or who will have a family friend conduct it to provide them with a favorable report. In many cases, they will also charge you a fee for the inspection. Instead, take the time to hire your own inspector to ensure that you're purchasing a healthy home. Yes, this will add to your purchasing cost, but it's well worth it.
It's a reality that some homeowners will inflate the value of their properties. Therefore, in most cases, your real estate agent will recommend that you have an appraisal done on the property. This number will actually benefit both parties because buyers won't be burned by an overvalued home, and homeowners will know exactly how much they should accept. An appraisal fee will normally cost between $300 to $450. Of course, the larger the property, the higher the fee will be.
If you're looking to purchase a home that has a massive yard such as those with a forested area or farms or ranches, then you're going to need to conduct a property survey. This property survey essentially marks the exact boundaries of the property. According to statistics, most land surveys will cost you around $344 and $676.
Taxes, it's something that nobody likes paying but is absolutely essential to our way of living. Therefore, be ready to not only pay taxes on the initial purchase of your home but also after the deal is closed; these are called property taxes. However, because each city has its own tax rates, we cannot tell you how much you're going to pay. Contact your local government to get an exact rate for what you're going to be paying per month.
If you're buying a home, then you don't need to worry about paying a commission to your real estate agent. In most cases, the seller is actually the one that pays both their agent and your agent commission. In the rare case that you share an agent with the seller, both of you will have to pay their commission. However, some real estate agents will lower their fees when this occurs.
If you’re thinking about buying a home, these are some of the fees that you may be asked to pay during the process.