The hidden costs of buying a new home
After months/years of hard work, you were finally able to save enough make down payments and then offset the rest through mortgage. But wait a minute – do you even know that certain hidden charges come with buying a home and are you prepared to pay them?
You will have to pay for home appraisal and the money would be used to evaluate the real value of the property you intend buying. You wouldn’t want to overpay for the property, and so you have to first appraise the property. Depending on the size of the property, cost of appraisal may raise around $500.
A professional inspector will have to come inspect the property for flaws and defect. The inspection will cover the roof, water system, foundation, the electrical and the heating system. Professional inspectors’ work may cost up to $500.
There may be need for further inspections some of which may include chimney, property lines, ancillary inspection and presence of termites. Though this may not seem like much individually, but when tallied together, cost of inspection can break you.
If you purchase a property that is in a bad shape, you make have to spend considerable amount of money on repair works especially if it isn’t covered in the agreement you have with the seller. Ensure the cost of painting, repairs and upgrades is well factored in your budget.