Buyers’ Expected Costs in a Real Estate Transaction
There are multiple costs a buyer will need to pay in a real estate transaction here in the Carlsbad, and it’s important to understand what to expect so there are no, or few, surprises during the process of buying a Carlsbad home.
Your buyer agent should review some of this with you, of course, and you will also be apprised of costs associated with getting your loan, if applicable, by your lender.
Keep in mind that these real estate transaction fees will vary depending on where you are buying the property, perhaps the type of property (condo vs single family detached home) and other factors. Also, not every fee you might need to pay is included here, and some items are negotiable between the buyer and seller.
It goes without saying the bulk of the costs are associated with purchasing the property, with a loan or for cash. But there are fees you can expect to pay even if you are not using financing.
Of course there are fees associated with the due diligence phase – the home inspection, for example, along with other inspections you might wish to have to supplement the home inspection. Here are some other inspections you might want to consider depending on the property and any concerns you might have.
As far as the lender is concerned they are required to disclose fees you can expect to pay early on in the process, including things like the appraisal. While many fees will be paid at the time of closing some, like the appraisal, may be required up front. Closing costs can include pre-paid interest, impounds required by the lender (e.g., property taxes, PMI, hazard insurance), and title insurance the lender requires.
Here’s a list of other possible fees you can anticipate, depending on the property and what’s been negotiated in your contract with the seller:
Prorated taxes and interest
HOA fees (e.g., pro-rated and 1 month in advance)
Property taxes that are due and not delinquent
Homeowners’ Insurance (aka hazard insurance) pre-paid for 1 year
Escrow fee (buyer portion)
Document preparation fees
Courier fees
Notary Fees
Document Recording fees
For more information on how to buy a home, check out my video series on my YouTube Channel, Home Buying Tips and Advice.
If I can assist you in any way with your home purchase, please get in touch with me at (760) 840-1360 so we can discuss your home buying needs and budget, and create a strategy to get you into a new home in Carlsbad, or nearby, in 2017.
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