Many homebuyers expect to pay for the down payment when buying a new home, as well as regular mortgage payments. However, there are additional hidden costs that every homebuyer should be prepared to pay:
- Home Inspection Fees - It is usually the buyer's obligation to hire a home inspector to assess the condition of the house, which needs be done before closing. If the home inspector discovers that the home requires major repairs or the property has other fundamental flaws, the buyer may be able to back out of the sales contract without facing a lawsuit, 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. The buyer is normally the party that is obligated to hire the property appraiser.
- Property Survey - Lending institutions also usually require an up-to-date survey of the property to qualify for a mortgage. The buyer is typically in charge of hiring a land surveyor.
- Property Insurance - These costs will continue even after the purchase of the home is complete.
- Title Insurance - Lending institutions normally 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 that is based on the purchase price,. It is up to the buyer to pay the tax.
- Adjustment costs – The 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 to Buy or Sell a House?
There are many steps involved in buying or selling a residential property. A real estate lawyer can guide you through the process and help you negotiate a price that is right for you. Additionally, a real estate attorney will review listing agreements with brokers, offers, and purchase contracts before you sign them to make certain that your requests are met. Furthermore, a real estate attorney can advise you on financing the house of your dreams.