What are the extra costs during home buying? Homebuying has costs that are more than 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 is a cost that varies by house size, age, and other factors.
If you’re looking to buy a condo, you can bank on the inspection being around $300-$350.
Single-family home inspections typically start at $400 and go up from there. Any homes over 3000 square feet start seeing a jump in price. 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 how many units there are. Square footage, age, slab or raised foundation, and how many AC units are all factors for the price as well.
Extra Cost #2: Wood-Destroying Insect Report
A wood-destroying insect report is commonly referred to as a termite report or termite inspection. However, the “termite inspection” is looking for other types of bugs that like to feast on wood. Powderpost beetles and carpenter bees are also wood boring and need to be looked for.
This inspection will typically start at $95 and goes up from there.
Extra Cost #3: Video Pipe Inspection
A video pipe inspection is necessary when purchasing a home as well. 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 purchasing the home that you have a major break in a sewage line.
The price of a video pipe inspection will typically begin at $200. The price on this inspection varies by the inspector and can increase 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 then.
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: Elevation Certificate
An elevation certificate determines how high your house sits above the base flood elevation in this particular location. We know, it’s confusing.
If you are purchasing a home located in an A or AE flood zone, paying for an elevation certificate is a must. This certificate can help decrease your flood insurance premium by a fair amount.
If you are located in an X or B flood zone, it is unlikely you will need one. However, if you fall in love with a house that is located in the middle of both an X and AE flood zone, you will need to bank on paying for this certificate.
An elevation certificate ranges from $200-$275.
Extra Cost #6: Pool Inspection
If your potential new home has a below-ground swimming pool, you should definitely consider paying for a pool inspection. These inspections range from $150 to $300 depending on who you hire.
Extra Cost #7: 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 #8: Structural Engineer
Many New Orleans area homes have foundations that have shifted. That’s one of the many fun things of living on top of a swamp!
If the house you love has a lean and you’re concerned about the structural integrity, we should hire a structural engineer to come and take a look.
The starting price to get an engineer out is $450.
Lagniappe
We may find that we may 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 home buying can quickly hit the tune of $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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