Budgeting
Budgeting for your home:
Some of the fees are rolled into your closing costs. Such as your earnest money. Some of the items listed below can be negotiated. In a seller’s market, as a buyer you may find yourself paying for most, if not all of these items. Prices for everything listed are all on a case by case basis.
Earnest Money: Is a buyer’s proof of good faith to the seller. It is turned in within 3 calendar days, by 5pm. Make sure you don’t wait until day 3, turn it in ASAP. Before you schedule any inspections make sure that you deliver Option & Earnest Money. Earnest money is about 1% of the purchase price and this gets credited to you at closing unless you default on the contact. This can be more if you are in a competitive market. The earnest money is turned into the Title Company.
Option Money: This is money credited to the seller for the unrestricted right for the buyer to terminate the contract for any reason or no reason at all. Though the amount is negotiable, your money buys you a negotiated amount of days known as the Option Period.
During this time the buyer does all desired inspections and negotiations are made.
Before you schedule any inspections make sure that you deliver Option & Earnest Money.
Inspections: Inspections are done to get an accurate estimate of the cost of repairs and maintenance. There are many different types of inspections. Some estimates have a cost and some are free. Inspections make it easier to identify what you should have your Realtor® negotiate for you. No home is perfect, even a newly built home can have issues that is why general home inspections – by a recommended vendor – are highly recommended! While you are within your Option Period, it is highly recommended that the home is inspected by professionals in order to determine the condition of the property. Inspection fees can vary depending on the property & company you choose. Make sure you get the home inspected as early in the option period as possible. You don’t ever want to start negotiations right before the end of your option period. Time is of the essence because you need to assess, discuss and evaluate what repairs will be needed.
Inspections can vary depending on the company you choose as well as the size of the property. Depending on the findings of the inspector you may or may not need to have your home further evaluated by a professional, specific to what home needs. A general home inspector will typically recommend a specialist, whether that’s a licensed plumber, HVAC company, or foundation specialist. Some of these professionals will charge either a trip charge and/or for their inspection.
General home inspection: $$500.00+/-
Your home inspector typically gives a detailed report on what they found.
(WDI) Termite Inspection: $100 +/-
Termite inspections are typically required by lenders, especially VA as well as FHA loans.
Pool inspection: $150 +/-
Depending on the inspection company you choose, you may need to request a separate inspection for the pool.
Septic Tank Inspection: $500-$900 +/-
Mold Inspection: $300-$400 +/-
Mold can be found within the walls and sometimes it is hard to tell that it is present until you get the property inspected for mold.
Lead-Based Paint Inspection: $300-$400 +/-
This is recommended for homes built before 1978.
Appraisal: $750 +/-
Depending on the size of the home this can vary in price. As well as if you have a rush Appraisal. Rush appraisals are usually ordered to not fall behind on the closing date.
Typically paid to the lender and the lender will order the appraisal on your behalf.
Title: $1500 +/-
Depending on the contracted price.
The title company makes sure that the title is clean and ready to be transferred to you as the new owner.
Survey: $500+/- Depending on the lot size (acreage). This could go up to $1,000+/- if it's a few acres or more. This item is negotiable and typically paid a closing.
Home Warranty: $700+/- per year
Can be negotiated to be seller paid. Moncada Realty Group recommends that your home warranty is ordered prior to closing to ensure that you are covered from day one! This is super important to have as you never know what could go wrong within your home, such as your appliances, your air conditioning & more. Depending on what company and what plan you choose you can be saving thousands of dollars, should anything need to be repaired or replaced. Make sure to keep an active home warranty for each year you own the home.
Homeowners Insurance: See your preferred insurance company
Your homeowners insurance can really come in handy and a great opportunity to protect your investment, should anything disastrous happen to your home. Such as, get caught in a flood, a fire, or a natural disaster etc.. Your coverage will depend on the company you choose and what they have to offer.
Owner Associations Documents: Price varies per Owner Association - Amount that the buyer pays is negotiable.
Owner Association documents let you know whether or not the property is in current standing with the Association & it will explain the fees/dues associated with it, as well the resale certificate and associated costs. Rules and regulations will be stated on the documents so be sure to carefully review. Moncada Realty Group can negotiate a certain amount of days to review the documents.
Though these are some expenses you would expect to incur, it could also depend on what you decide to get inspected. Some of these items will make up part of your closing costs. Inspections do not make up part of your closing costs. Inspection fees are paid directly by you as the buyer and they are used to make an educated decision on the purchase of the home. Seller's can agree to pay any, all, or none of the recommended repairs. Make sure to negotiate with the seller at the beginning of your option period.