44% of homeowners report they weren’t aware of all the costs associated with buying a home. Educate yourself so you’re not part of this 44%. Here are the top seven expenses that new homebuyers forget to factor in:

Closing Costs

Appraisals, surveys and lender fees — these range between 2% to 5% of the loan amount. The national average is about $6,000.

Mortgage Taxes

Mortgage taxes are $0.35 per $100 in value. For example, taxes on a $500,000 mortgage would be $1,750.

Moving Costs

The national average cost of moving is about $1,400 with a range from $800 to $2,150. (That’s for a two-person moving team completing a local move of less than 100 miles. The average cost of a long-distance move: between $2,200 and $5,700.)

Home Inspections

These typically run from $500 to upward of $1,500 depending on the location and size of the home.

Title Insurance

Title insurance generally ranges from 0.25% – 0.5% of the purchase price, depending on the value of the home. The higher the value, the lower the rate.

Capital Contributions

Many Home Owner Associations (HOAs) have capital contributions for new residents entering the community. These fees go towards improvements to common facilities enjoyed by all residents. These fees can range from a few hundred dollars to several thousand, depending on the neighborhood, and are in addition to the mandatory membership and initiation fees required by country club communities.

Potential Renovations

A 2017 survey found that new homeowners spent an average of $10,601 on furniture, appliances, and home repairs — in the first year.

 

Do you have any other questions about the process of buying real estate in South Florida? Give me a call: (561) 400-5311.

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SOURCES: realtor.com, Forbes, National Association of Homebuilders