One of the most vital parts of purchasing a home is being realistic about what you can afford. By factoring these 5 costs into your budget you will get a better idea how much your new home actually costs. Making sure you have an accurate estimation will lessen your chances of getting blindsided with additional expenses after you purchase your new home.
When looking to buy a home it is important that you also consider the costs of maintaining and living in the property. While there are some fees you might be used to paying at your old place, such as cable or internet, there might be some unfamiliar costs. Some of the the most common utilities include; water, sewer, heat (propane or natural gas), electricity, cable, and trash. If you are moving to a climate that is a lot hotter or cooler than you are used, you have a big green yard, or the home is larger (and thus takes more time to cool off/heat up) all factor into your utility costs. You should also factor in the costs you are be leaving behind. For example, if you are moving to a much more warmer climate, like Lemon Grove, it is likely that your heating bill will lower. Whatever the case, it is important that you recognize what new utilities you will need to pay for.
Before you can actually purchase the home you will first need to get it appraised. This will typically cost you around $450 – $500 but can differ depending on the market you are in and the property itself. An appraiser’s job is to make an estimate of what the property’s fair market value is by analyzing the home size, condition, any obvious home issues, and other factors.
Lenders will use the appraisal to determine whether the loan you are seeking is too large for the value of the property. If that is the case, you might not be approved for the loan because lenders want to know that they can make their money back if you default.
It is important when buying a home that you are fully aware of all the costs associated with repairing, maintaining, and even remodeling the home are. This is why it is essential that you have your own inspector come in and conduct a home inspection. An inspectors job is to point out what needs be repaired and also what is needed to maintain the property. This will help you determine whether the property is worth the repairs detailed or not. Depending on the time of the inspection you can also use this information to your advantage when you negotiate the price. While a home inspection might sound similar to an appraisal, they are in fact different and both essential. An inspector will go much more in depth into the home whereas an appraiser will only look for the obvious abnormalities.
While these costs obviously differ largely with the distance you plan on moving. According to the American Moving & Storage Association, the average price tag for an intrastate move is $1,170 while one between states costs $5,630. It is important to factor these costs into your total expenses. Look into the price of hiring a moving company, packing materials, moving trucks, the amount of gas it will take you to move, and any additional fees that moving companies have (such as a fee for moving during summer).
Homeowners Association / Condo Fees:
If you are planning on moving into a Condominium, you will have to pay a monthly or annual fee as part of your membership. This fees goes towards things like building upkeep and maintenance and might even go as far to cover heat, water, or garbage collection fees. Unfortunately, these fees do not stay constant and can change based on the cost of the building or the perceived costs for the coming year. This means, leave a little wiggle room for an increase in fees. While fees differ from complex to complex, according to the US Census the average condo association fees run from $2,400 annually or around $200 a month.