Having a home buying budget is essential to ensure your finances stay healthy. In this post by Stewart: Riva Title Company in South Miami, we’ll cover the basic fees you should consider when buying a home. 

If you’re going into home buying, it’s essential to keep in mind that the property price is only one thing of many you’ll need to consider in your home buying budget. When buying a home, there are other fees involved that shouldn’t catch you by surprise. Keep reading to learn more about these fees and when you will be expected to pay them.

There are many steps to buying a home, but having professionals by your side, like Riva Title Company, Inc., can make the process much smoother. Give them a call today at 786-787-7888 to learn about their professional title services, including title insurance, in South Miami.

Home Inspection Fee

Having a professional come and inspect a property you’re looking to buy is essential to ensuring your investment will be worthwhile. It might seem like the property you’re looking at is in perfect shape, but inspections could reveal problems. Even if these are minor and easily fixable, it’s a good idea to know before you sign closing papers, so there are no surprises. Property inspections are performed by a qualified inspector or builder. Depending on their experience and the inspection they will be providing, prices might vary, so it's important to consider them part of your home buying budget. Some inspectors will do surface-level inspections, while others will get into the trenches and note every single thing they notice. When shopping around for a home inspector, ask for a detailed list of what they’ll inspect for you to understand what their services entail clearly.

Conveyancing and Lawyer Costs

A lawyer or conveyancer’s services can be worthwhile when buying a property. It might feel like too much of a hassle to enlist the services of a lawyer to buy a property, but there are the many legal ins and outs that, if not careful, you could get in legal or financial trouble from. Having a lawyer by your side gives you an added layer of protection and can ensure a smooth transaction. There are many aspects a lawyer or conveyancer can assist you with, such as completing and submitting legal documents, booking in the settlement, and ensuring legal documents are on the up and up. As for prices, it differs from lawyer to lawyer and can also depend on how long you’ll need their services, so look around at your options and compare prices when looking for a lawyer.

HOA Fees

If the property you’re about to purchase has a Homeowners Association (HOA), you’ll need to consider the fees they collect. HOA fees are usually paid monthly to maintain the neighborhood, to upkeep common areas, garbage collection, and park maintenance. Depending on your closing agreement, you’ll need to reimburse the seller for fees already paid or pay the HOA directly for future services.

Title insurance is an excellent way of protecting your investment, so it's a good idea to include it in your home buying budget. Call Riva Title Company, Inc. at 786-787-7888 to speak to one of their title experts and learn more about their services and how they can help protect your assets.

Real Estate Agent Fees

If you enlisted a real estate agent's services to find your dream home, you’d also need to keep their fees in mind. Real estate agents usually charge from 4% to 6% of the property’s selling price.

Seller Fee

Depending on your closing agreement, sometimes the buyer will need to pay the seller’s fees. These fees could happen if there are delays in the process or if there are costs associated with the lender or the seller’s lawyer. While these fees aren’t always present, they’re usually the buyer’s responsibility when they do appear.

Settlement or Closing Fees

The settlement or closing process is the last step you’ll need to take to purchase a property. This step usually comes with a fee that covers the process of exchanging documents and money between the seller and the buyer. Even if many things in the home buying process can be done digitally nowadays, some, like the settlement, need to happen in person and require a few people in your home buying team to meet, including your lender, lawyer, and the seller’s lawyer.

There are many scenarios that could bring a claim against the ownership of your property, like a forged signature or an unknown inheritance. In these cases, having title insurance is an excellent way to protect you, your lender, and your investment. Call Riva Title Company, Inc. today at  786-787-7888 for more information on their professional title services.