Here at Burnett Real Estate Team, our clients often have questions about the costs that are involved in buying a home. Beyond the price of the home itself, there are a few additional costs that home buyers should expect.
Not every homebuyer will find themselves faced with these situations, but they’re important to keep in mind. Your realtor can help prepare you for the specific circumstances of your home buying experience.
Here are a few of the costs that may be involved in buying a home.
Typically, a mortgage insurer (such as a bank) will require that an inspection be done on the home before the deal is finalized. A standard home inspection can run several hundred dollars, and more in-depth home inspections can be costlier.
Inspections can (and should!) be done not just on the structure of the home itself, but also on the electrical wiring, the plumbing, the heating and cooling units, the roof, the waste disposal operations (either sewer or septic), and the water especially if you’re working with a home with a well.
Are they worth it? Absolutely. Even if your insurer doesn’t require it, it’s a good idea to have one (or two) done anyway. You wouldn’t buy a car without having a mechanic look it over, right? Your home should be no different.
Knowing what you’re getting yourself into before you sign on the dotted line can only save you money in the long run and prevent surprises from popping up on you unexpectedly.
Agent fees are typically paid by the seller of the home. As a homebuyer, you should generally expect this to be the case, though it will not be true in all circumstances. Most notably, if you’re purchasing a “For Sale by Owner” using a realtor then there may be fees passed on to you.
The total cost of agent fees depends on the cost of the home, but are generally 2-4% of the total cost of the home.
Before giving you the money to buy the home, your lender will want to make sure this home is worth every penny they’re loaning to you. This is where an appraisal comes in. An appraiser will walk the property, document various features the house is equipped with, and note what state these features are in.
Certain features such as a deck, fireplace, multi-car garage, or a pool are all things that may increase the value of the home. On the other hand, structural damage or an old roof may lower the value.
This is typically the choice of the buyer. It is not required but it can give you extra piece of mind. We tend to make it buyers choice in a subdivision in town, but we are pretty adamant about a buyer getting one if there is a large lot in the country or acreage involved. Because the survey is typically for the buyer’s benefit the costs will fall to you, however in some cases this can be negotiated as part of the home price.
A survey shows the limits of the property being purchased which is beneficial if you’re thinking of making additions such as building a shed, putting up fencing, etc. Likewise, you’ll be able to see if a neighbor is are encroaching on your property.
Buy with Confidence
The above are all standard costs that are routinely part of the home buying process. While they may seem “hidden,” there’s a great deal of transparency involved at all levels. Always keep in mind that inspections and surveys are typically done for benefit of all involved, especially you, the buyer.
If you’re looking to become a homebuyer in the Bentonville area, we’d love to help you find the house of your dreams. Contact Us today and let Burnett Real Estate Team walk you through the process from start to finish!