Maintenance, repairs, renovations, and redecorating If it decides to make a repair to the building that’s not part of its annual budget, you and your neighbors could be slapped with a special assessment to raise money for the unanticipated project-and this could cost you a few thousand bucks!Ģ. If you’re considering a condo, ask for information about the HOA’s budget and cash reserves. The upside: Your HOA might care for things that save you money and time, like maintaining the landscaping around your townhouse. The more amenities you get (e.g., a pool, doorman, roof deck, or community center), the more you’ll pay. If your new home is a condo, or part of a community with a homeowners association, you’ll pay a monthly fee toward maintenance of shared community features. So even though you might not have to deal with these expenses until after you move in, you should definitely factor them into your decision. Some cost you actual money, while others cost you time, energy, and happiness (which, let’s face it, also have an equivalent in money!). Expenses you’ll encounter after you move in Inevitably, you’ll face a major repair on your new home, so consider whether a home warranty will save you from that expense. They generally cost a few hundred dollars per year and protect things such as kitchen appliances, ceiling and exhaust fans, plumbing, the furnace, and the sump pump. If you’re buying an older home with appliances that are no longer covered by manufacturer warranties, getting a home warranty could be a good call. A home inspection will take a few hours and cost up to $500, but it can save you a lot of grief in the future. This is a must to make sure you’re not buying a home with major structural issues. Your mortgage lender must explain all the fees to you, so if anything confuses you, ask for more information. And you can expect closing costs to run from 2% to 5% of your home’s value. We’re talking about fees that, all together, can add up to a few thousand dollars. The seller might pick up some of these costs, but you’ll have to shoulder some of the burden. The house has to be appraised to find its fair market value, the property records must be checked to make sure the seller has full rights to sell you the home, the real estate agent has to be paid for her work, and so on. Expenses you’ll learn about while home shopping It’s important to consider them early in the process, before you fall in love with a place you can’t afford. These fees might affect your overall budget, timeline for buying, and what kind of home you want to buy. In fact, there are lots of hidden costs to anticipate.
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