Breaking down all of the costs that come with buying a house.
What is the true cost of buying a home in Charleston? While the price tag is a huge consideration, remember that a lot more than just price goes into buying a house. However, today let’s go through the buying process and see exactly how much it will cost.
The largest cost will always be the down payment. If you want to buy a $500,000 home but only get approved for a $400,000 loan, you will have to put down the difference. Make sure you leave the money in a bank account for 90 days before moving it.
There are also other fees to account for; the inspection fee, appraisal fee, title insurance, and attorney fees all fall into this category. I recommend budgeting around $3,000 for these costs, but it depends on the purchase price. If you’re moving to Charleston, know that the sellers pay around 0.36% of the purchase price to the county because of something called deed stamps. In other parts of the country, buyers usually pay this, so remember that this is actually a seller’s cost in our area.
“The largest cost will always be the down payment.”
You may have to pay adjustments too. Adjustments are compensation for expenses that the seller has already paid. The most common example is property taxes. If the seller has paid $5,000 in taxes for the whole year, you would have to pay back a portion of those taxes when you buy the home.
Another common adjustment is prorated mortgage payments. If you close on the home halfway through the month, they’ll charge you interest for the half a month that you’ve owned the home. They’ll also add the first month’s mortgage payment to the closing costs.
The last fee to keep in mind is moving fees. Even if you just ask your friends to help, you’ll still have to buy pizza and beer. The overall moving cost will vary greatly depending on the distance, time required, and the size of the home. Moving across the country will be very expensive compared to moving locally.
If you’re buying, we have an exclusive five-step system to help you find a home. The first step is home loan pre-approval, where we help you find out how much home you can buy. The second step is our home-hunter system. We will constantly email you new and off-market properties that match your criteria.
The third step is our specialized market knowledge. We help you get the home you want with our experience and leading-edge technology. The fourth step is our unique team sales approach. We can close your transaction quickly and hassle-free because you’re not just hiring me; you’re hiring a whole team who can help coordinate the experience for you. The last step is our value-build consumer program, where you’ll receive preferred client benefits, including an exclusive sell-for-free guarantee and a home warranty.
If you have any questions about today’s topic, please call (843) 972-3833 or email us. We’d love to speak with you.
