Often, as we begin to make plans to purchase an Oakland or Piedmont home, we have a tendency to decide what we can afford by looking at the asking price of the home for sale. While this is certainly a sensible place to start, some other issues come into play that should be considered when deciding what one can pay for the home.
There are, in fact, other costs involved in purchasing a home that will need to be included in any buyer's budget. While many things are negotiable between buyer and seller, it is a good idea to include these elements into your purchasing plans.
1. Professional Home Inspection Fees: It is extremely important to have your future home thoroughly inspected before making your purchase, especially if you have concerns about structural or condition issues. Depending on the size of the home, and the cities involved, home inspections cost approximately $400-$600. Additional cost may be incurred if there are mold or termite issues that need more review. A termite inspection should cost approximately $200-$300.
2. Appraisal Fee-Your home will need to be appraised professionally before you get your home loan, so include that in your plans. Fees are usually around $500 for this service.
3. Closing Costs-When you submit your loan application, you will be given a Good Faith Estimate of Closing Costs for your review and information. Take time to consider this carefully, because here are where money issues are often a surprise to new buyers, especially. These are projected costs, not firm prices, and may change as negotiations proceed, but you need to be prepared to pay these if you are going to move ahead.
4.Move In Costs-Not every new home is going to fit your needs as you move in. You may want to repaint, install new carpeting, or put in a new kitchen or bathroom tile. Include these in your budget if they are immediate must haves to make your life more comfortable. Also add in moving fees to move from your old to your new home. You need to get a realistic estimate as to these costs, especially if you have a large home with many possessions that you want to keep in your new home.
5. Other Essentials-While you may not be able to attend to these as soon as you move in, there are often things that will need dealing with to make your daily life more comfortable in your new home. Perhaps the bathrooms need serious upgrading, or the heating system is seriously out of date, or the lamps and lighting fixtures are not suitable, and will need attention. Include these costs in your considerations if they are, in fact, essential to your comfort in your new home.
In summary, review these issues and make a plan to deal with them when searching for that perfect future home.
Posted by Bruce Wagg on