Here are three home-buying costs you should budget for in San Diego.
Are you excited about buying a home this year but nervous about all the fees you might have to pay? When buyers purchase homes, one of the biggest complaints I hear is that they wish they would have known about all the random fees that pop up throughout the process. Today we’re going to go over some of the most-forgotten fees that come up during escrow to help you prepare for them:
1. Transfer fees. There are parts of San Diego that require a fee paid by the buyer to an institution, organization, or community fund that goes into helping preserve the community. They can range anywhere from a couple of dollars to a couple thousand dollars. Whenever you’re shopping in a community that you’re unfamiliar with, make sure to ask about private transfer fees.
2. Loan fees and condo certification fees. They may be small, but they can add up if you don’t budget for them.
3. A supplemental tax bill. Let’s say you bought a home for $500,000 many years ago. If a buyer purchases that home today for $1 million, they are responsible for the $500,000 difference in tax bills in a one-time payment. At the end of closing, the buyer would have to pay that tax bill.
These are just a few of the often-forgotten costs associated with buying a home that we like to make sure our clients are prepared for before starting the process. If you have any questions or need help with your home purchase, don’t hesitate to reach out via phone or email today. I look forward to hearing from you.