What are the extra costs of home buying? Homebuying has costs beyond just a down payment and closing costs. We will cover everything from inspections to elevation certificates so that you know how much money you will need.
Extra Cost #1: General Home Inspections
Home inspections are a crucial step in purchasing your new home. This cost varies by house size, age, and other factors.
If you’re looking to buy a condo, you can expect the inspection to cost around $350-$400.
Single-family home inspections typically start at $400 and go up from there. Any homes over 3,000 square feet start seeing a price jump. Homes older than 50 and raised homes will also see an increase in price.
Multi-family home inspections typically start at $450-$500 and increase based on the number of units. Square footage, age, slab or raised foundation, and the number of AC units are all factors in the price.
Extra Cost #2: Wood-Destroying Insect Report
A wood-destroying insect report is commonly referred to as a termite report or termite inspection. However, a “termite inspection” looks for other types of bugs that feast on wood. Powderpost beetles and carpenter bees are also wood-boring and need to be looked for.
This inspection typically starts at $195 and goes up from there.
Extra Cost #3: Video Pipe Inspection
A video pipe inspection is also necessary when purchasing a home. We would argue that it’s the MOST IMPORTANT inspection that you have done. We live on a swamp and our pipes shift. You don’t want to find out after you purchase the home that you have a major break in the sewage line.
The price of a video pipe inspection will typically begin at $200. The price of this inspection varies by inspector and may be higher for multi-family homes. If you are buying a house with a lot of bathrooms, like over 4, the video pipe inspector will likely charge more.
Extra Cost #4: Roof Inspection
While this is not an inspection that everyone pays for, we may find it necessary after completing the general home inspection.
Most roofing inspections begin at $250.
Extra Cost #5: Pool Inspection
If your potential new home has a below-ground swimming pool, you should definitely consider having it inspected. These inspections range from $150 to $300, depending on who you hire. However, the only pool inspector we recommend who actually inspects everything is around $1000-$1200.
Extra Cost #6: Deposit
Once you have an accepted offer on your new house, you will have to ante up a deposit. This is negotiated in your purchase agreement and is normally 1% of the sales price. Again, this amount is negotiable between you and the seller.
Extra Cost #7: Structural Engineer
Many homes in the New Orleans area have foundations that have shifted. That’s one of the many fun things about living on top of a swamp!
If the house you love has a lean and you’re concerned about its structural integrity, we should hire a structural engineer to take a look.
The starting price to get an engineer out is $450.
Lagniappe
We may find that we need another specialist after completing general home inspections. Whether it’s an electrician, foundation specialist, contractor, or handyman, they will all charge separate fees. As the homebuyer, you are responsible for paying these fees. Proper due diligence is necessary when buying a home.
The extra costs of buying a home can quickly add up to $1000. And that’s not including your deposit amount. When you are beginning the homebuying journey, it’s important to have the money on hand for these items.
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