Published on our August 2022 Newsletter

QuestionWhat are the top 5 hidden costs of Buying a Home or Condo?

Chris’s Answer: Here are the 5 hidden costs to keep in mind!

  1. Closing costs, prepaid fees, and other fees. Getting a loan costs money. Plan on paying for your loan to be processed along with an appraisal fee. Closing costs and prepaid fees generally range between 3% – 5% of the purchase price.
  2. Inspections. An inspection by a licensed home inspector is key to any home or condo purchase. This will inform you as to the condition of your home or condo so that you better understand what you are buying. The owner will disclose anything they are aware of, but an inspector will give you a full detailed report. For a home or land, you will want a survey done. Often an appraisal is needed.
  3. Association fees. Condos have have HOA fees associated with them. Some homes do, too. These fees will be pro-rated for the year at closing.
  4. Maintenance, repairs, and decorating. Your monthly budget responsibilities could include landscaping, pool maintenance, pest control, garbage pickup, cable TV, and internet. There might be a few minor things for you to repair after closing. Also, you will want to make your new home YOURS. So, budget for decor, paint, landscaping, furniture, or anything else you may want to change. Sometimes just adding new decorative pillows will change the look of your living room and make it more personal!
  5. Utility bills. Don’t let budgeting for utilities get lost in your excitement. Think about the energy you will be using (water, electricity, AC, pool, washer/dryer, etc.), and add that to your monthly budget.

Are you looking to find the perfect property for you and your family on St. Croix? Please contact us and we will be happy to assist you in every stage of the home buying process!

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