What To Expect When Buying A Home

Orange County, CA Real Estate Podcast with Torey Severino

When purchasing a new home, I’ve found that most buyers tend to focus most of their attention on the initial down payment.

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Over the last 16 years, I’ve learned that most home buyers are so focused on the initial down payment that they fail to take less-apparent costs into consideration. No matter what percentage you’re putting down for your down payment, it’s important to understand that you should have extra money set aside for the additional costs.
These costs include: Escrow fees, lender fees, appraisal fees, title fees, and prepayment on property or HOA taxes.
All of these costs could potentially add up to about 1% to 2% of your total purchase price. Depending on the market, we may be able to negotiate for you and get the seller to offer some form of credit. When the market’s a little less competitive, sellers may be a bit more flexible and more willing to negotiate, but when the market is hot and there are multiple offers on properties, we see this less often.
After escrow, your next costs are going to come from the home inspection. Plan to set aside $350 to $700 for the general home inspection. This cost is based on square footage and the number of bedrooms and bathrooms in your home. After we find out what needs to be repaired, additional inspections—like a termite inspection or a roofing inspection—may require you to hire inspectors to come out and look at the property, which can cost anywhere from $500 to $1,500.

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Be sure you’re not pinching pennies upon closing.

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The third cost to consider is moving costs. You’ll probably have to hire a moving company to come help you pack your things up and make sure they get to the next property safely. This can range anywhere from $800 to $2,500, or even up to $5,000 if you have the company come pack everything up as well.
Finally, be sure to have some money set aside to personalize your home. You may want to paint, make some upgrades, or buy some new furniture, so you’ll want to make sure you’re not pinching pennies when it comes time to close on your property.
If you have any questions about moving or about real estate in general, please give me a call or send me an email. I look forward to talking with you soon!