So, you have the money to buy a Nashville house but are you prepared for the other costs that come with it?
Buying a House Comes with a lot of Fine Print
Buying a house is one of the best and most important purchases of someone’s life. It can also feel overwhelming for first time home buyers, even after a lot of planning. Sometimes buyers are unaware that there are more costs than just the price of the home, especially if they are searching without an experienced REALTOR. Hopefully, this will help Nashville home buyers better understand these costs including the most commonly overlooked ones: attorney’s fees, closing costs, property taxes, moving expense and insurance.
Overlooked Costs: Attorney’s Fees
When it comes to attorney’s fees, there is a lot of paperwork involved. A lot. Of course, involved with this paperwork comes the cost of the attorney to look over these documents with buyers. These are fees not normally considered when it comes to the final cost of the house, considering it does not DIRECTLY involve the house.
It is a big mistake to overlook the attorney’s charges when planning a home buying budget. These can often be some of the most expensive costs, if not the most irritating, and should be budgeted accordingly. Talk to a real estate agent or ask a closing attorney for an estimate.
Overlooked Costs: Closing Costs
Closing costs are the final cost of the house when it comes to the end of the transaction. Sometimes, people make the mistake that the seller will cover these costs; but when this is not the case, the buyer is confused as to where the higher amount came from. Always budget accordingly for these costs and make sure not to go over your limit because you did not factor this in.
Overlooked Costs: Property Taxes
Property taxes, like all taxes, are not usually wanted. These are monthly taxes on your house that can sometimes put you way over your monthly limit that you set aside for your mortgage. What makes this overlooked cost so important is that it is not just a one-time fee. There are monthly finances that need to be accounted for and thought out before making that final purchase. This is a cost that can really balloon your budget and cause you to search for a cheaper alternative.
Overlooked Costs: Insurance
Insurance and moving costs are the last two on are list of overlooked costs. The cost of homeowners insurance is something that people often do not consider when buying a house, even though it may have been a discussion to get your home covered. People underestimate how much insurance can cost on a home and do not even worry about it, especially if they are used to paying for renter’s insurance. Homeowners insurance is much more expensive and be an unpleasant surprise.
Overlooked Costs: Moving Expenses & Maintenance
People also do not consider how much it could cost to move their entire life with them. From budget moving (renting a truck, paying friends in pizza) to hiring a moving company, moving expenses always seem to exceed the budget. Depending on the quality of your home inspection report, your home may also have some initial maintenance needs that you overlooked during your walk-thrus. This is another reason to hire a certified, professional home inspector with a good reputation.
These 5 overlooked costs when buying a home can add up to one large, painful sum of money. There are many things to consider before making a new home purchase. Be sure to discuss your home goals, concerns, and budget with a professional real estate agent to help avoid unwanted surprises like these overlooked costs. Call DeSelms Real Estate today at 615.550.5565 for more information!