Hidden Costs of Purchasing A New Home
Authored by Ken LaMance, LegalMatch Law Library Managing Editor and Attorney at Law
Many homebuyers expect to pay for the down payment when buying a new home, as well as regular mortgage payments. There are additional hidden costs, however, that every homebuyer should be prepared for:
- Home Inspection Fees - It is usually the Buyer's obligation to hire a home inspector to assess the condition of the house. If the home inspector discovers that the home requires major repairs or that there are other fundamental flaws, the Buyer may be able to legitimately back out of the sales contract, depending on the contingency clauses in the contract.
- Property Valuation Fees - In order to qualify for a mortgage, lending institutions require the property to be appraised. It is usually the Buyer's obligation to hire the property appraiser.
- Survey - Lending institutions also usually require an up-to-date survey of the property to qualify for a mortgage. It is usually the Buyer's obligation to hire a land surveyor.
- Property Insurance - These costs will continue even after the purchase of the home is complete.
- Title Insurance - Lending institutions also usually require the Buyer to purchase title insurance to cover any title-related issues that may arise with respect to the property.
- Taxes - Some jurisdictions assess a Land Transfer Tax or Property Purchase Tax based on the purchase price, to be paid by the Buyer.
- Adjustment costs - Buyer may have to reimburse the Seller for any pre-paid taxes and utilities on the property.
- Legal Fees - It is a good idea to hire a real estate attorney review listing agreements with brokers, offers, and purchase contracts before either party signs any documents.
Do I Need a Real Estate Lawyer if I Want to Buy or Sell a House?
There are many steps and a lot of information involved if you wish to buy or sell a residence. A real estate attorney can guide you through the process, and help you negotiate a price that is right for you. A real estate attorney will also review listing agreements with brokers, offers, and purchase contracts before you sign them to make certain that your requests are met. Further, a real estate attorney can advise you on financing the house of your dreams.
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Last Modified: 02-15-2013 03:58 PM PST
