What are the hidden costs of buying a home or condo?

Question: “What are the hidden costs of buying a home or condo?”

Our Answer:

In the excitement of finding your island home, keep these costs in mind:

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 the 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.
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.
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!
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.
Closing costs, prepaid fees and appraisal: If you are getting a loan, it does cost 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.