Apart from the list price or the purchasing price of a home, there could be many other costs related to home ownership. These can carry a range of costs from property taxes to lawn mowing. First time home buyers often don’t know about the other expenses related to housing. So, they can read this article where in Zack Childress, a real estate mentor, investor and author gives tips on this.
Home inspection costs:4
Home inspection is a very important part of home buying.
- Home inspection helps buyers to know about the future home repairs
- Home inspection helps first time home buyers to learn about the property’s worth
- Home inspection also helps them to learn more about the property
- Home inspection results can be used by buyers to negotiate housing prices
Home inspection times vary depending on the size of the house. A condo can be inspected in just 2 hours whereas a big house can consume 6 or more hours in accordance with its hugeness. Agents can charge roughly about $100 per hour.
Pest inspection is very important. After buyers buy a house and find them to be infested with termites, rats and other types of pests, they will feel really annoyed. Not only this, they will have to make arrangements to stop pests. This comes in at a time when buyers can least afford to do so.
Agents have to be paid. The buyer’s as well as the seller’s brokers receive charges. Charges are usually between 2.6 to 6% of the selling price and are paid by the seller. Rates are not fixed and can be transacted.
Closing costs are legal fees, property taxes, utility adjustment costs and land transfer taxes.
The lawyer has to do the following
- Registering the title deed and mortgage
- Reviewing the terms of the offer
- Doing a title search on the property
- Directing the terms of property transfer from one ownership to another
- Settling adjustment costs
He needs to be paid for that. In addition to this, there are costs for email, phone and fax
Land transfer taxes
In some places such taxes are levied upon transfer of ownership. It varies with the purchase price of the property
A home buyer’s monthly mortgage payments encompass PITI that is principal, interest, property taxes and insurance. Property taxes take up a good chunk of a buyer’s income. It can run to several thousand dollars a year.
Utility adjustment costs
The utility costs will be adjusted as part of the conveyance or the adjustment statement. These should include all the prepaid utilities
Costs related to transfer of belongings
These can often run to several thousand dollars. Unless one has a large group of friends or the house purchased is near the old home, one cannot escape these costs.
These guidelines by Zack Childress will serve to be useful for first time home buyers as they are often taken aback by the amount of other housing costs incurred as the deal progresses and at the end