Before you start preparing and counting your money to seal the deal and buy that house you have been eyeing, you should first consider the hidden fees.
Buying a house is an extremely overwhelming process that buyers need to go through and it is a process that should never be taken lightly.
And with so many factors to be considered when buying a house, buyers – especially first-time buyers – are the ones who are likely unaware of the hidden fees that come with a purchase.
Which is why it is advisable to double check your budget before you go and sign the contract.
Here are 7 hidden fees that all home buyers should put into consideration when buying a house.
1- Inspection Fees
Just like buying a car, you hire a mechanic to check it before closing the deal, right!
The same goes for properties you are about to purchase.
It is extremely important to get the property inspected before you sign any contracts.
Hiring an inspection professional will cost you – maybe not that much – but it’s an additional cost you should put into consideration.
2- Maintenance Fees
This is why the inspection phase is crucial in order to determine the hidden maintenance fees.
When buying a house, landlords might deliberately hide the fact that the property needs major maintenance.
And even if the repairs were minor, they are still a cost you didn’t plan for when browsing for houses.
New paint, light fixtures, floor coverings are small repairs but will cause you a headache if you weren’t prepared beforehand.
3- Realtor Commission
Buying a house is a process that requires the help of a professional which will cost you.
Realtors take a percentage, so before you go and hire one, just make sure to know their price before going any further with the buying process.
But by all means, this is one of the hidden fees you should not ignore.
Realtors are the best ones to find you the property that fits your needs, demands and budget.
And thinking that going on your own will spare your extra cash will actually cost you more when you find yourself buying a house for more money that its actual market value.
4- Earnest Deposit
In some countries, a buyer pays a deposit to show the seriousness about purchasing a property.
Also, a deposit secures the house for the buyer and shows the buyers seriousness towards purchasing the property.
Usually, this amount of money is held by a third party – a bank – in an escrow account.
Many buyers don’t put into consideration the fact that they need to secure the property before handling their finances.
5- Appraisal Fees
If you are buying a property, then chances are you will be taking a mortgage loan from a bank.
An appraiser will come and inspect the property in order to file a report to the lender which will then determine the value of the loan you should get according to the appraised value.
However, you should consider that the loan you are allowed to take might not be enough for you to purchase the property.
6- Moving costs
You are buying a house to live in, then you are going to need to move all of your stuff to the new place.
Moving will cost you especially if you are buying a big house which means moving your old stuff and buying new ones.
You need to calculate the moving costs and especially if you are moving to a new house that is far away from where you live now, which will cost even more.
7- Interior Designing
Despite the fact that this isn’t qualified as a hidden fee, but most buyers get shocked during this phase.
Decorating and furnishing your house is inevitable and you need to be aware of their actual costs before you go and buy a big house that you can’t afford to furnish.