There are several costs in a real estate transaction that most people don’t think of. To keep you safe from some big surprises down the road, today we’ll be uncovering these hidden costs.
Many people are aware of the hard costs: down payment, earnest money deposit, closing costs, etc. The soft costs, however, are a bit easier to forget about:
Storage. Whether you’re buying or selling, there’s a good chance you’ll need to put some things in storage until the transaction is complete. This is especially the case when you’re making a concurrent sale—buying and selling at the same time.
Moving expenses. There are expenses involved with moving items to and from storage or from house to house.
Cleaning. Typically, people clean the home they’re leaving and clean the one they’re moving into. Those are two cleaning costs that need to be budgeted for if you bring in professionals.
Punch-out list. After the seller has gotten their home under contract, the inspector takes a look at the home. They’ll return with an inspection notice that indicates what the buyer wants to be replaced. Now, you have to account for making those repairs if you want to ensure a smooth closing.
Maintenance during escrow. You still need to be taking care of the lawn and sidewalks during escrow, regardless of whether you’re living in it.
Inspections. As a buyer, you’ll need inspections to ensure the home you’re purchasing is ready to go. The general inspection covers the main parts of the home, but if you want other types of testing—for example, radon, mold, termite, and lead—you’ll need to pay more for each.
“There are several costs in a real estate transaction that most people don’t think of.”
If you have any questions or need more information, feel free to reach out to me. I look forward to hearing from you soon.