Buying a home should be an exciting time in a person’s life, whether it’s their first home purchase or they’ve already owned several houses. However, purchasing a home can also be a stressful experience, particularly when the potential home buyer is trying to figure out all the potential costs that will be associated with the purchase both now and in the future. According to Zillow, an online real estate database company, the average home buyer in the U.S. pays approximately $9,000 per year in “extra” costs.
Lifehacker.com recently provided examples of some of the “hidden” costs of buying a home in New Jersey, New York and elsewhere. Many home buyers, especially first-time home buyers, are caught off guard by the extra expenses that come with their real estate purchase.
Here are a few examples of the additional costs of buying a home:
- Home Inspections: You are going to need to cover the costs of a general home inspection – and these costs can be as high as several hundred dollars. The costs could be even higher if it turns out that more than one home inspection is required before you can officially close on the home. Also, keep in mind that home inspections may not be optional: it is likely that your lender will require at least one inspection before approving any loans.
- Closing Costs: Don’t assume that the agreed-upon purchase price for your new home is what you will actually end up paying. The reality is that closing costs – which can include lender fees, appraisal and escrow fees – typically increase the final home purchase price by between two and five percent.
- Taxes and Insurance: There are also certain ongoing costs after you have closed on a home and completed your purchase. For example, you may need to pay a monthly mortgage, as well as interest, taxes and insurance costs.
For more information, access the Lifehacker.com article, “All the Hidden, Unexpected Costs of Buying a Home.”
If you are thinking about buying a home or selling a home in New Jersey, Joel R. Spivack, Esq. is an experienced real estate attorney who can help you throughout the home buying process. Contact Mr. Spivack now to schedule a free consultation and discuss your options.