The other day I was reminded again of how buying a home in the Phoenix Real Estate market isn’t like buying anything else most people buy. And I remember when I looked at Phoenix Arizona Homes and bought my first house – I was so surprised and stressed out by all the money I spent before I even bought the house. So, for everyone that has never bought a house, here is a quick run-down of typical expenses you may need to pay in addition to paying for the house.
The first expense you’ll get is the earnest money deposit. This is due when you make an offer, and it is typically $1000 or 1%, whichever is greater. This is actually part of the purchase price of the home, but you pay it well before the rest of the money is needed.
The next expense you’ll get is deposits for turning on the utilities if the seller has turned them off. This can run from $30 to $200 for each service you’re connecting — electric, water and gas. These need to be on for the inspection and then turned back off until closing.
After that, you’ll pay the inspectors, for their inspection reports. These reports run about $350 – $400, for a basic inspection plus a termite inspection. If the property has a pool, that runs another $50-$60. This isn’t a required expense, but highly recommended to have someone inspect the home and spot any problems that might not be so obvious. The inspector may recommend getting further evaluations from specialists such as a structural engineer, air conditioning technician, or a roofer, depending of course on the findings in the initial inspection.
Finally, if you are getting a loan, your lender will require an appraisal, which runs $400-$500 and also needs to be done and paid for before closing.
So when you add all that up, it costs $1900 – $2600, to cover the out-of-pocket expenses that are needed before you even pay for the house itself. Even if you take the $1000 earnest money out of those figures, it still adds up to $900 – $1600, which is a lot of money that most people who haven’t done it before aren’t aware of, and haven’t budgeted for.
Our Phoenix AZ Realtors are experts at helping you find the gems in the Phoenix MLS as you look for Phoenix Homes for Sale. What’s more, they have many more tips to share with you if you are looking to make a home purchase. Contact us at www.ThompsonGroupAZ.com or 480-776-5214. We’d love to help.