What are the hidden costs of buying a house?

Asked by Frenchie, Phoenix, AZ Thu Feb 2, 2012

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A. J. Stewa…, Agent, Fort McDowell, AZ
Tue Feb 7, 2012
Nothing should be hidden when buying a house. If you are purchasing Real Estate without the representation of a Real Estate Agent, then at least attempt to rely on a title company (buyers choice normally) to make sure there are no liens on the property and that you have a HUD 1 report that clearly explains all costs. Title reps will go over these with you to insure you understand them. If you need further assistance in Arizona call me. AJ Stewart Veracity Realty Group 480-217-2167
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Shane M. Hig…, , Phoenix, AZ
Fri Feb 3, 2012
Hi Heather, the costs in buying are quite transparent. When you select a home and get a contract for it, you open escrow. Generally 1% of the purchase price or more is your earnest deposit or good faith money. Then you get a home inspection, depending on the size of the house it's usually under $500 dollars. Next step is the appraisal fee, generally a few hundred dollars as well. The only other money you'll need is the down payment and your closing costs, the lowest down payment is 0% for veterans using a VA loan and 3.5% and up for FHA and conventional loans. The closing costs can be covered by paying them out of pocket at close of escrow or building them into the loan, essentially raising the amount financed to cover the closing costs which are generally between 1 & 5% of the sales price. Hope this helps some!
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Rob Madden, Agent, Carefree, AZ
Fri Feb 3, 2012
I'm not sure about hidden costs but there are often overlooked expenses that home buyers have that they didn't when they rented property. One of the most overlooked expenses is the maintenance of a home. General upkeep and landscaping can take time, money and energy. Add to the equation a swimming pool, and you may be looking at an additional $100 a month. Depending upon the property, there will always be maintenance to the major systems of the home, including AC maintenance and repair, AC replacement, roof replacement, etc. Working with a well qualified buyer's broker will help mitigate many of the upfront and unexpected expenses that you may not have considered.

Rob Madden
Designated Broker
Green Leaf Realty
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Robert D Hug…, Agent, Devon, PA
Fri Feb 3, 2012
Frenchie, there should be no hidden costs when purchasing Real Estate. Request an estimate from the representative you work with as well as the lender you are working. They are required to give them to you, so you know exactly what costs to expect.

Best of luck and only contact reputable/knowledgeable Professionals only.

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