New Homeowner Fees

Buying a new home is a huge decision – how often do you make a purchase with that many zeros?! And while our experienced real estate professionals will guide you smoothly through the home-buying process, potential buyers should go into the house hunt considering all the expenses they can be expected to cover beyond the home’s purchase price. Please note that all costs are estimations.

Closing Costs

Closing costs are very detailed and determined on an individual basis, so there’s no one-price-fits-all. Some of the fees that may be included in closing costs are the appraisal cost, title search fee, title insurance premium, closing fee and loan underwriting and origination fees. The buyer, the seller or a combination of the two may pay closing costs. The total can range from thousands to hundreds of thousands of dollars. Buyers can expect to pay an average of 2 to 5 percent of the purchase price in closing costs, with the higher range being for financed purchases. That means if you’re purchasing a home for $250,000, you can expect to pay between $5,000 and $12,500. It’s crucial to have the amount and responsibility clearly delineated in the purchase agreement – lenders must give you a document called a Closing Disclosure at least three business days before your closing date. There are a number of closing cost calculators available online, but take them with a grain of salt and consult a professional.

Appraisal Fee

These professional services will appraise the home and estimate its true market value. This service usually costs between $200 and $500.

Survey Fee

The survey will check that the home conforms to zoning laws, is situated on the lot and that your new neighbors aren’t encroaching on the property. The survey is usually a few hundred dollars.

Home Inspection

You’ll want a professional to inspect your prospective home and get down to the bones of it. Fees depend upon the size of the home, but they usually run under $1,000.

Origination Fee

Your mortgage lender will charge this application fee, and it is usually between .25 and 1 percent of the total loan amount.

Prepaid Insurance

Going back to the HUGE price tag, buyers will usually want to have a prorated portion of their insurance due at signing, because you never know! This could include private mortgage insurance (PMI), homeowner’s insurance and flood insurance.

Flood Certification Fee

If you’re buying in a potential flood zone, this cost is associated with determining whether the property is actually in a flood zone.

Tax Service Fee

This fee is associated with ensuring your property tax is credited correctly.

Credit Report Fee

Your lender will need to evaluate your credit for purchase evaluation and lending purposes – there’s a fee for that!

Bank Processing Fee

Many banks will charge a fee for gathering information to submit your completed loan application.

Compensation for Real Estate Brokerage Services

When you hire a real estate professional to help you buy a home, you’ll pay a brokerage fee. This fee, which is negotiable and may even be covered by the seller or the seller’s broker through contract negotiations, covers the expert guidance and services provided. These include access to exclusive listings, skilled negotiations, market analysis, transaction management, and potential cost savings.

HOA Fees

If your home is subject to HOA fees (like many in Florida are), the seller may have paid them in advance and you would be responsible for reimbursing those fees.

Please note! Other optional costs, depending on the property, include lead paint check, mold inspection n, radon inspection, pest inspection and well water testing. Contact one of our expert real estate professionals to learn more 904-940-5000.