There are many expenses involved in a real estate transaction that Buyers should keep in mind prior to moving forward with the purchase.. Here’s a checklist of all major costs that you need to buy a home:
Buyer doesn’t have to compensate the Realtors for finding their home.
The commission is always paid by the Seller at the closing, where the fee is directly subtracted from the Seller’s proceeds of the sale.
Buyers will pay between 1.5 to 3.5 percent of the purchase price of their home in closing costs. The cost may vary whether the transaction is all cash or with a mortgage.
“You might pay between $2,000 to $5,000 in closing costs for a property worth of $150,000”
For a new developments, the closing costs are 1.75% of the sales price.
The Buyer’s approval by the condo association is required prior to the closing. The condo fees that serve to run your credit check and criminal background check may range between $100 to $250 depending on the association.
“A certificate of approval is required by the title company prior to the closing date”
HOME INSPECTION COSTS
In order to get a detailed inspection report on the physical condition of the property you are about to buy, expect to pay between $250-$500, depending on size, age of the house, scope of services and other factors.
REAL ESTATE & PROPERTY TAXES
Real estate and property taxes are based on the assessed value determined by the Property Appraiser. The assessed value is a yearly estimation performed to decide the reasonable market value (usually below actual market prices) for your home based upon the value of land, buildings and improvements.
“The tax rate is approximately 2% of the assessed value”
A homeowners insurance policy provides homeowners with financial compensation should they suffer losses related to their home. Homeowners insurance rates in Florida are high due to hurricanes and flood in the area.
For condominiums, unit owners usually only needs a coverage for the interior of the apartment as opposed to single-family home, where the costs are higher as owners are responsible for the entire coverage.
“Insurance is often an expense that many buyers overlook”