How Much To Spend When Buying a House
When looking to buy your first house (or any house for that matter), it’s important to keep in mind the necessary, out-of-pocket expenses that go along with homeownership… And no, I’m not talking about your downpayment or loan closing costs! I believe it’s important for future property owners to know about these expensives upfront and WAY before writing an offer. So, let’s cut to the chase- how much will you really spend when buying a home?
GOOD FAITH DEPOSIT
Also known as earnest money, a good faith deposit is collected once your contract is accepted. The check/cash is deposited into our office’s escrow account where it is held until closing time! Typically first-time buyers will have $500 earnest money/good faith deposit. This amount can vary as it is dependant upon price range and financial capabilities.
INSPECTION(S)
Though some homebuyers will opt out of a complete property inspection, most first-time buyers will hire a professional home inspector to inspect their future investment. Dependant upon the house size, inspectors can charge anywhere between $250-$500. A termite/pest inspection is scheduled separately and is an additional cost. This inspection can range anywhere between $50-$100. If property has a septic tank, pool, or other attached ammenty, the buyer may want to schedule additional inspections. Each inspection is paid for separately by the buyer.
PROPERTY SURVEY
A property survey is NOT mandatory or required when purchasing property. However, a buyer can request a pinned or staked survey at the cost of professional surveyor. This price varies greatly and should be researched further by both buyer and buyer’s agent (me!). I would estimate spending anywhere between $500-1,000 for a professional land surveyor, but again this is not required!
TAXES/INSURANCE
Taxes and insurance are often referred to as pre-paids in the professional world. Pre-paids are prorated by the closing attoney and are collected at the time of closing. Pre-paids can be paid for by the seller IF the contract states for seller to contribute x amount towards buyer pre-paids… But as a future property owner, you need to get used to these! Both taxes and house insurance are mandatory, annual costs to homeowners. If money is tight, talk with your agent (me) about asking for seller paid pre-paids for your first year!
Buying a house can seem intimidating, but once you breakdown your estimated expenses, find an established lender you like and a REALTOR you trust (me, again!), the rest is SIMPLE! This process should be fun- it should be exciting, a little nerve-wrecking and stressful at times, but 100% self-fulfilling! Call/text me today to see about becoming a HOMEOWNER yourself! My name is Caroline and I’d love to help YOU!
859-327-1565
Photo By: Rainwater Photography