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hi this is Anita from Real Estate Crunch
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today we're going to talk about some of
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the things about buying a home in
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particular what are some of the hidden
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costs of buying a home and we're going
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to talk about this in the sense of the
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United States for major US cities but of
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course this would be about the same for
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anywhere in the world when you're buying
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a home there's some things you need to
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look at number one is the home
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inspection cost this can cost anywhere
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between $300 to $600 uh there can be you
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know different types of add-ins which
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can go into this too so you know this
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could add up but before you buy you'll
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want to have the home you're looking to
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buy be professionally inspected for
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structural issues pest you know the
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heating and air condition systems and
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more this is usually the buyer's
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responsibility so this usually falls
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upon the buyer appraisal fees you'd also
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want to you know have it be appraised to
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verify the home value actually matches
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uh the loan amount and this again you
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know is usually something that's out of
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pocket um you know during the that you
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need to pay during the loan process
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property taxes can vary by state so a
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lot of people when they're looking at
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buying a home they don't really think
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about the property taxes but that's
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something you need to think about when
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you're buying a home for affordability
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is to make sure that you can afford the
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property taxes other things like
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homeowners insurance you need to make
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sure that you can afford the home
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owner's insurance you know you need to
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be able to protect your home from things
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like you know damage theft or liability
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or other types of things you know one of
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the big problems which has been
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happening and you know California with
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the fires was a lot of the homeowners
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there didn't have insurance for fire or
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or you know some people that we have had
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recent floods didn't have home insurance
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for floods so essentially the floods
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destroyed their homes they lost
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everything fire destroys their home
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they've lost everything you know HOA
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fees the home association fees you know
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these can really add up they can be
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anywhere from a hundred to $1,000 a
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month and they can really make a
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difference so if you don't account those
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into your monthly payments you could be
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in trouble i've seen some places where
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you know the buying is relatively low
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but then you look at the HOA fees are
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$700 a month i mean that's huge so if
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suddenly your payment is $2,000 a month
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and now you've got $700 a month plus you
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know on top of it property taxes you
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know it could be you know $400 a month
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and you really need to look and say is
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that worth it or not worth it um closing
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costs can be expensive too you need to
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look at all the different things for the
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closing cost as well as moving costs
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they can vary anywhere between $500 to
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$5,000 depending upon how far you're
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moving or even further if you have to
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move even further it can cost even more
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and things like ongoing maintenance it's
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recommended that when you own property
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you put aside 1 to 3% of your budget in
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order for home maintenance and repairs
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you know we can compare i have a chart
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here in in a blog post I've written
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where I'm comparing some of the costs in
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some of the major cities from Phoenix
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Arizona i have Salt Lake City Utah
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Orlando Florida Chicago Illinois and of
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course Milwaukee Wisconsin which is kind
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of where I'm from so you can see sort of
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some of the difference uh for example on
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all of these the appraisals between $450
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to $600 with Chicago being the most
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expensive but the home inspection can be
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anywhere between $350 to $700 again with
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Chicago the most expensive but of course
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other places it's expensive too so it's
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very similar down the line and then you
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know different things you'll need in
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your budget it really just depends upon
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the area but you know surprisingly
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Phoenix Arizona was up to $18,000
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you need extra Salt Lake City 15 Orlando
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Florida you know be 20 uh Chicago 25 and
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Milwaukee 19 so some of them are pretty
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much about the name but it just depends
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you know and then the tax rate of course
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um can be different in each of these two
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so insurance too can also make a
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difference where you know um you know
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Salt Lake City had one of the cheaper
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insurance costs where of course one of
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the highest costs was Orlando Florida
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that would because of the hurricane
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season of course and then after that was
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Chicago because Chicago is a major city
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so hopefully this gives you some ideas
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of of some of the different cities and
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what they are so you can look at them
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and you can see you know you should you
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should really you know budget for all
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these hidden costs and even if you think
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that you don't need it you should still
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keep it in your budget and if for some
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reason you're lucky and you don't need
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it then maybe you can use it and go on a
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nice holiday somewhere or go somewhere
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if you're interested to be able to read
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more about this we've written a blog
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entitled What are the hidden costs of
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buying a home in major US cities we will
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put a link in our description below so
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that you can be able to click on that
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and be able to read more we really
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appreciate you joining with us being
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part of our community we hope that you
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find these things informative that it
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helps you to be able to understand more
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important investment as real estate
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