Are You Prepared For These Costs Of Buying A Home?

There is not denying it. Buying a home is expensive. Oftentimes, it’s more expensive than many buyers realize.

Once the process gets started the costs keep adding up. If you haven’t properly budgeted, you may find yourself wondering how you underestimated the costs so much.

You won’t just be paying for the house with your initial down payment, there are many costs that are associated with buying a home. There are the closing costs, homeowner’s association fees, inspections, and moving fees, just to name a few.

In this post, we’ll cover some of the hidden charges that come with buying a West Knoxville home.

Closing Costs and Pre-Paids

Closing costs are of the fees that are associated with closing your real estate transaction. Here are some examples of closing costs that Knoxville buyers pay at closing:

-Origination Charges
-Appraisal
-Credit Report
-Closing Fees
-Lender Title Insurance
-Owner’s Title Insurance
-Title Examination
-Discount Points
-Recording Fees
-Transfer Taxes
-Escrows

These are just a few of the examples of the closing costs a buyer can expect to play at closing. Many buyers can be caught off guard when they realize how expensive closing costs can be.

If you don’t get closing your closing costs covered by the seller, you should be prepared to pay anywhere from between 2% and 5% of your purchase price in closing costs. But, should you prefer to avoid paying some or all of your closings costs, be sure that you ask the seller to cover them when you write an offer.

Inspections

Inspections are another expense that comes with buying a home. A home inspection is one of the best things you will do when you buy a home. So, don’t think of this extra expense as unnecessary.

A home inspection allows you to fully inspect a home before it’s yours. A home is a large investment, so you want to be sure that you know what you’re buying. Without one, you wouldn’t know if there were foundation issues or if the roof was in desperate need of replacement. Needless to say, a home inspection is one of the most worthwhile costs associated with buying a home. If a home inspection finds too many issues, you can still walk away with your earnest money.

A home inspection generally costs anywhere from $300 to $500 depending on what type of inspection you do. You’ll probably opt to do a termite inspection as well. Generally, termite inspections cost anywhere from $40 to $50.

Homeowner’s Association Fees

Finally, another unexpected expense can be homeowner’s association fees. Certain HOAs may require you to pay an initiation fee to join the HOA and you may be responsible for paying some of the dues when you close. Sometimes these dues can be somewhat pricey, especially if you weren’t expecting to have to pay them.

Depending on the neighborhood, the fees may not be very much or they could be quite a bit. For any buyer, having to pay an additional $500 for an HOA initiation fee at closing can be tough, especially if that wasn’t a cost that you were expecting to have to pay at closing.

Just be sure that before you write an offer, you’re clear on any dues that you may be responsible for paying.

Are you thinking about buying a West Knoxville home this year? Please let us know if there is any way that Knoxville Home Team can assist you. Rick can be reached at 865-696-9002 or via email at [email protected]. Kati can be reached at [email protected]. Also, be sure to check out our West Knoxville Home Search Page.