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Fees Associated with a Home Purchase
 
 
One of the first questions is often: What are our fees to represent a buyer..
 
GREAT NEWS FOR YOU AS A BUYER:
 

Real Estate commissions paid out are the SAME whether a buyer's agent is involved or not, so sit back and enjoy your full service representation your top Lux-RE-Homes agent, knwoing that your best interest will be keenly looked after, without the concern that you might be increasing the selling price of the home.

 
Below are some of the other costs you DO need to consider when buying a home. Planning ahead is the best advise we can share to be prepared with the funds you need to close your real estate purchase transaction.
 
You by now should have a very close estimate with respect to your complete mortgage payment. Below are some of the additional expenditures you, as the buyer, will want to be prepared for.

 

These expenses vary:  some of them are one-time costs, while others will take the form of monthly or yearly installments.  Some may not even apply to your particular case.  But it’s best to educate yourself about all the possibilities, so you will be prepared for any situation, armed with the knowledge to budget accordingly for your move.  Use the following list to determine which costs will apply to your situation prior to structuring your budget:

 

  1. Purchase offer deposit which in San Diego is traditionally 3% of the purchase price, at closing, your deposit is generally credited towards your down payment.

 

  1. Inspection by certified home inspector which can range from $350-$750 for most single family homes under 4,000 square feet, and perhaps higher for larger residential and comercial properties. This fee covers a 'general' inspection, and does not include specific follow up inspections from specified trades if needed such as electrical, plumbing, hvac, pool, structural engineering etc.

 

  1. Appraisal fee: 

Your lending institution will most likely request an appraisal of the property.  The cost of this appraisal is piad for by the buyer and averages between $500 and $1,000 for standard residential properties under 4,000 feet, however can exceed well into the thousands for non-standard residential and commercial properties.

 

  1. Survey fee: 

If the home you’re purchasing is a resale (as opposed to a newly built home), your lending institution may request an updated property survey.  The cost for this survey will be your responsibility and will range from $300 to $1000. 

 

  1. Mortgage application at your lending institution: - Some lenders charge a mortgage application fee ranging from $250 to $500.

 

  1. In addition to the lender application fee, there are various lender charges associated with your loan processing. Fees such are optional such as pre-paid loan points, to buy down your rate, however on FHA Loans the borrower pay a manditory Origination fee of form 1.75-2.5%, so we strongly advise that you request a a Good Faith Estimate from your lender to detail all of these costs and charges, and that you make an appointment to closely discuss all of these charges.

 

  1. Escrow and Title fees: 

Escrow and title fees vary, and other than the related loan costs, they make up the lion share of ones closing costs. Each escrow and title firms have their own schedule of fees and they should be contacted to confirm such fees. In some transactions these fees are split by buyer and seller, and sometimes these aspects are negotiated.

 

  1. Homeowner’s insurance: 

Your home will serve as security against your loan for your financial institution.  You will be required to buy Homeowners or Hazard insurance in an amount equal to or greater than the mortgage loan. In some cases additional coverages may be required by the lender such as floor or earthquake insurance.

 

  1. Taxes Land transfer (purchase) tax and property tax:  When a property changes hands there are associated taxes levied. In addition there are annual property taxes that range between 1.075 and 1.4% of the purchase price of the property in San Diego County . These numbers area subject to change and future assessments from the taxing authorities can increase or decrease your properties taxable base.
  1. Moving expenses / storage fees

 

  1. Utility Start up fees / service charges: 

Any utilities you arrange for at your new home, such as cable or telephone, may come with an installation fee.

 

  1. HOA Dues / Maintenance fees: 
If you are moving to a new condominium, or a gated or associated community, you will likely be charged a monthly Home Owners Association (HOA) fee which covers the costs of common area maintenance.
These dues can cover a multitude of expenses from landscaping and maintainance of common grounds, pools, recreation area, limited insurance, water, trash pick up, security services, or a multitude of other items. Each HOA is unique and there are no specific rules as the what an HOA 'generally' covers, so it is best to not make any assumptions and confirm what your HOA covers as part of your due diligence process.

 

 

  1. Renovation of new home: 
In order to “make it their own,” many new homeowners like to invest in other renovations prior to or upon moving in to their new home.  One time costs such as  landscaping, cosmetic construction, painting, and window treatments should be considered this is your plan, budget accordingly.
 
 
 

   14. Mello Roos:

 
The Community Facilites Districts borrow money to develop and make improvements on public services, such as public buildings, schools, parks, and infrastructure. The local government sell bonds to raise the money to fullfil these deveopment projects, and homeowers in the community pay back the bonds via a "Mello Roos" tax. The tax amount and duration vary from each area. Some can be pre-paid at a discount.  Again this is another item one needs to research during the escrow process as these monthly costs can be significant and can extend for long durations.