Buying a home comes with a lot of costs. Some you know about – closing costs, real estate commission, property taxes, etc. However, many homebuyers (especially first-time homebuyers) aren’t aware of other costs that may pop up.
Knowing what these expenses are will help you prepare and avoid unexpected surprises:
Property inspection
Some buyers think that all issues and problems are discovered and handled if the seller has a completed property inspection. Unfortunately, this isn’t always the case. If a buyer wants to be confident that they are buying a quality property that doesn’t have serious issues that need to be addressed, paying for their own inspection is highly recommended.
Pest inspections
Along with having the structure and elements of the property inspected, it’s also smart to invest in a pest inspection. After all, the last thing you want to have to deal with is termites, roaches, or mice when you move in. Unfortunately, not all sellers will disclose these issues, so it is smart to commission your own inspection before signing anything.
Earnest money
Earnest money serves as a type of deposit on the home purchase application. The purpose is to let the seller know you are committed to the purchase. When the contract is finalized, the money you used as a deposit is put toward the closing costs and down payment. Keep in mind, though, if you back out of the sale, there’s no guarantee you will receive this earnest money back, so it’s a good idea to read the contract terms carefully before making this payment.
Preparing for home-buying costs
Buying a home is an exciting time; however, it can also be expensive. Be sure you are ready for what you must pay by knowing some of the common unexpected costs.