When it comes to buying a new home, it is best to be prepared for the costs that will be involved and not have any surprise expenses sneak up on you. If you are currently looking for a Pittsburgh on your lot builder to build your new home, Parry Custom Homes has the breakdown of costs associated with buying a new home so you can prepare for expenses you will most likely incur along the way.
The first cost to always plan for or count on is homeowner’s insurance. This is something you can definitely expect to pay along with your new home. Policies can vary dramatically depending on the type of coverage you choose. The basic coverage will cover the property and liability due to things like smoke, theft, falling objects, explosions and fire or lightening. Most homeowner’s insurance won’t cover damage that results from natural disasters like hurricanes or flooding, however it is possible to add that type of coverage to your policy if needed. Your first year’s insurance is typically paid at closing, and is anywhere from $300 and up.
A second cost to plan for will be a home appraisal. Unless you are paying cash for your home, most lenders will require home appraisals. A home appraisal is an educated guess on what the property is worth to give the lender an idea on collateral value. Usually the seller will pay for the home appraisal but in the event that cost falls on the buyer, expect to pay around $300.
The third cost to keep in mind will be the cost for a home inspection. This is a vital part of determining the condition of the house and with the inspection, you will find out if the home meets state requirements and get a more accurate idea of what you will be willing to offer. Buyers should ask to see a list of items covered in the house inspection before it even takes place. This will allow time to request any additional areas of the home are looked at as well. Expect to pay anywhere from $300-$500 for your home inspection.
Another fee you may run into is proof that your home may or may not be located in a specific flood hazard area. If the property is determined to be in a flood hazard area, then your lender will be required by law to have flood insurance on the property. This fee typically only runs around $20.
A survey fee for your home paid to a professional surveyor who verifies the boundaries of the property is something you can expect to pay as well. Boundary verification is important as any additions to the home, such as fences, driveways, sidewalks or garages that infringe on a neighbor’s property, can be removed without warning. Having this kind of information can save you a lot of money down the road, so it is a good idea to invest the $335-$650 that this fee will typically run.
Lastly, moving costs will be something you will want to budget for. Whether you move yourself and have to rent a truck or need to hire professional movers to help you move. According to HomeAdvisor.com, the average American pays about $707 in moving costs. If you want a full-service mover, expect to pay upwards of $1,000.
Keeping these costs in mind and planning for all of them will have you in good shape, come time to sign on the dotted line for your new home.
Parry Custom Homes is an established homebuilder in the Pittsburgh area. Call or contact us today for more information.