Buying a home can be exciting, but knowing the hidden costs that can catch you off guard is essential. Understanding these expenses will help you budget more accurately and avoid surprises.
Inspection fees
Before finalizing your purchase, you need a home inspection. This fee typically ranges from $300 to $500. Inspections can reveal issues requiring costly repairs, making them crucial steps in the buying process.
Appraisal fees
Lenders require an appraisal to determine the home’s value. Appraisal fees usually range from $400 to $600. This fee ensures the lender is not lending more than the property’s worth.
Real estate attorney fees
Massachusetts law requires a real estate attorney to be present at the closing. While not always mandatory in Maine and New Hampshire, hiring an attorney is highly recommended. Attorney fees can vary but typically range from $800 to $1,200. Your attorney will review all documents and ensure the transaction complies with state laws.
Title insurance
Title insurance protects you and the lender from legal issues related to the property’s title. Depending on the home’s value, this one-time fee can range from $500 to $1,500.
Property taxes
Property taxes in Massachusetts, Maine and New Hampshire can be significant. They vary by location but are generally around 1.23% of the home’s assessed value. Make sure to factor this into your annual budget.
Transfer taxes
When you buy a home, you must pay a transfer tax. Massachusetts’s tax is $4.56 per $1,000 of the purchase price. Maine and New Hampshire have similar transfer taxes, so be prepared for this expense at closing.
Homeowners insurance
Lenders require homeowners insurance to protect the property. The cost can vary, but expect to pay around $1,000 to $1,500 annually. This insurance covers damage from events like fires and storms.
Moving costs
Do not forget about the cost of moving. Depending on the distance and number of belongings, hiring professional movers can cost anywhere from $500 to $2,000.
Securing your future home
Understanding these hidden costs helps you prepare financially for your home purchase. By budgeting for these expenses, you can ensure a smoother home-buying experience.
Consider consulting a real estate lawyer for the most accurate estimates and advice tailored to your situation.