Home Inspectors

Buying a home is an exciting adventure for most people even when you weigh in all the particulars like dealing with lenders, applying for loans and getting a property appraisal by companies such as Regency Property Appraisers. Many times people consider purchasing a home and do not consider all the other costs associated with it. Of course they make plans in their budget and manage savings accounts for making the purchase but are unaware of other costs that will be required when making the purchase. Presently the real estate market is seeing some growth and with the lower prices and interest rates many have considered homeownership since it can be cheaper than paying rent. However, it is important to make preparations for all the upfront costs associated with making the purchase.

Fees for the Inspection and Property Appraisal

It is important to note that a property inspection and a property appraisal are not the same thing. An inspection is required in most regions to determine the overall livability of the house as well as to determine if things like plumbing and electrical systems are all up to local code. An inspection will also make sure that there are no harmful substances like radon or lead in the home as well as common pests. A property appraisal is conducted by a licensed professional such as Abbe Edelman. It is used to determine a valuation of the home and the fair market value. The property appraisal is important to both the purchaser and the lender.

Closing Costs

Many individuals make the mistake of using all of their savings to put down on the property without realizing they will be responsible for closing costs as well. Occasionally, a buyer can negotiate with the seller about closing costs. These can vary between different regions but typically run between 2 and 4 percent of the mortgaged amount. Closing costs may include a wide variety of costs such as attorney fees, recording fees, title search, document preparation and survey fees. Basically, these fees cover all the administrative costs for the transaction.

Real Estate Agent Fees

For those who go through an agent to find and purchase a home, their services may be paid in a couple of different ways. Usually the seller pays the agent a small percentage of the sales price on the property. Buyers will usually go through their own agent or broker and the fees are negotiated any number of ways. In the typical transaction, the buyer will pay the real estate agent fees back on the closing date as part of the closing costs.

Property Taxes

One of the responsibilities that comes with purchasing property including your own house is paying property taxes. In many cases the taxes are figured in as part of the monthly escrow that is paid. In situations where taxes are figured in with the monthly payment be sure to note that when property taxes in an area go up, so will the mortgage payments.

Home Owner’s Insurance

Most of the time, the lender will require the buyer to purchase home owner insurance. Purchasing insurance will ensure the homeowner that in the event that the home is destroyed or damaged it can be repaired or rebuilt. Insurance will also protect you from liability if someone is injured while on your property. This helps to protect the homeowner and the lender from major financial losses in the case of theft, fire or storms. For those who live in areas which are susceptible to earthquakes, floods or hurricanes, there is often a need for supplemental insurance. Insurance typically has to be purchased before the transaction is finalized.