Updated: Dec 11, 2020
Hidden Costs to Avoid in Real Estate.
I had a conversation with a colleague of mine last week in the office, and we were talking about a struggle that one of his clients had in regards to hidden costs. They hadn't really walked through some of the things that can pop up when you purchase a home, and that's something that we always do a powerful job of trying to educate our home buyers and home sellers to understand what type of costs are involved when you actually make a home purchase well there are several things.
That you're going to want to think of because it is not just either the mortgage or the cash purchase, depending on how you're looking at acquiring a property. There are additional costs: property taxes, homeowners insurance closing costs, and then even potential repairs that may pop up in the property taxes and vary state by state. Still, generally, they're going to be a percent and a half of total property value, and that will be an annual expense that can be es-crowed as part of a mortgage but will still be an expense than the less so you want to
factor it into your monthly outlay of expenses. Same thing with property insurance. You have to have property. Insurance in case of tornadoes, theft damage, hurricane anything that could
destroy property or cause damage you want to have insurance on it, and that is an additional cost you're also looking at closing costs. Which generally are a singular part of the transaction, but you'll want to factor in such examples of items as appraisal title company charges recording fees processing or mortgage fees.
Those of you types of things will pop up over the course of a transaction, and last but not.
At least every home is going to age. So there are things that are just going to pop up capital improvements that will happen in maintenance that needs to be done in a property, anything from the roof to the furnace to the cosmetics of flooring or painting or windows and everything in between all of those costs come into the joys of homeownership if you ever would like to see a net sheet or breakdown of what a typical cost structure may be on a home, please feel free to connect with us at any point.
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