Ready to Buy? Top expenses to factor into your purchase.
5 Hidden Costs of Homebuying
HIDDEN COSTS OF HOME BUYING
44% OF HOME BUYERS report they weren’t aware of all the costs associated with buying a home. Top expenses that new home buyers sometimes forget to factor in:
CLOSING COSTS These range between 2% to 5% of the loan amount. The national average is about $6,000.
HOME INSPECTIONS These typically run from $300 to upward of $600 depending on the location and size of the home.
TITLE INSURANCE The average cost of title insurance is around $1,000 per policy, but that amount varies widely from state to state and depends on the price of your home.
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.
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.)
SOURCES: Realtor.com, Forbes, National Association of Home builders
Have a Great Day!
As always, for all your Real Estate needs in the Sarasota Area Call or Text Larry @ 941-993-3125 or Go to Larry’s RE/MAX Site and search all you like LarrySellsSarasota.com
by Peter Crowley, President of RE/MAX Alliance Group
Peter Crowley, President RE/MAX Alliance Group
As a co-owner of a local title company, we are often asked, “Why do I need title insurance?” Depending on your circumstance, the answer may vary. As with most forms of insurance policies, no one is typically thrilled to pay for something that you hope that you never have to use. Unlike your homeowner’s insurance or car insurance, however, title insurance is a one time charge that will provide protection for as long as you own your home.
If you are financing your home, your lender will require a lender’s title policy to insure that their security interest in your property (the mortgage) is in superior position to anyone else that may claim an interest in your property. The amount of the coverage for the lender’s policy is the amount of the outstanding mortgage principal. When purchasing a home with a mortgage, because you are already paying for a lender’s title policy, the additional cost for an owner’s title policy is only slightly more and it just makes sense to include the owner’s policy – so that you are covered. The lender’s policy alone does not give you as the owner any coverage.
Prior to closing on the sale and financing of your home, the company conducting the closing will search the public records to discover any liens (public or private), encumbrances (outstanding mortgages or restrictive covenants from a condo or homeowners association) or easements (utility or other agreements to use your property). If there are any issues they may create a cloud on title, which typically must be resolved prior to closing.
Since our local market has a large amount of cash closings, we are often asked, “If I am not getting a mortgage, then why do I need to pay for title insurance?” In this case, an owner’s title policy will protect the owner for similar undiscovered liens or encumbrances that may impact the owner’s ability to use their property as they intended. The amount of coverage for an owner’s title policy is typically the purchase price of the home. In some cases, such as a fraudulent transfer, the owner’s title policy would protect them from the economic loss of not being able to occupy the property. Without an owner’s title policy, your only recourse in the event that a title defect is discovered would be to sue the seller/grantor based upon the warranty deed that you were provided at the time of your purchase/closing. However, if that seller/grantor is deceased, or cannot be located, or does not have the assets to compensate you for any loss you may have suffered, you would be left without a remedy (unless you have title insurance).
We would like to thank our guest author Peter Crowley Larry and Ann Brzostek
As always, for all your Real Estate needs in the Sarasota Area Call or Text Larry @ 941-993-3125 or Go to Larry’s RE/MAX Site and search all you like LarrySellsSarasota.com
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