TOP 10 NEW HIDDEN COSTS When Buying a House | Hidden Fees When Purchasing a Home

There are many hidden costs when buying a house. So what are the top hidden fees when purchasing a home? If you are buying or investing in real estate, these are the hidden costs associated with buying property, that you need to be educated about before making an offer. When you are buying a home there is more than just the purchase price and mortgage payment. So, what are all the costs when I buy a home? This video goes in-depth about the major costs associated with contracting to purchase and close the deal. These are the first costs of homeownership.

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Jerry Pinkas Real Estate Experts
604 N 27th Ave
Myrtle Beach, SC 29577
843-839-9870

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HOA Transfer Fees - Watch out! New construction is notorious for this! They can call this a couple of different things: a capital contribution fee, conservancy fee, estoppel fee, a transfer fee. Before you buy a house, make sure you clarify exactly how much these fees are. - If you’re in a homeowners association this is paid once at closing. It can range anywhere from $500 up to a full 1 percent of the sales price of the property.

Home inspection. - Did you know you need to pay the home inspector up front, usually before he performs his work, this comes out of your pocket. The home inspection prices vary widely, based on the size of the home, also…which home inspector you choose, and the detail of the report. This can run anywhere from $350 up to $900 for some of the really big homes.

Earnest Money Deposit- This is not a fee, but is an upfront cost. It’s your skin in the game saying… yeah I am ready, able, and willing to buy this house, and go through with this sale. Usually, it’s around 1% to 3% of the purchase price. This money will eventually go toward your closing.

Appraisal fees -  A home appraisal is an estimate of a home's market value by a 3rd party. If you are financing the house, the bank will want to verify the true value of the amount they are loaning money on. This could be between $600-800.

City or town property tax - This will vary according to which state, county, and city you live in. This is prorated by the month.

Personal Property Tax - If this is a rental property, like an air b&b, or vacation rental, and you have furniture in it, you could have an additional tax that is applied, to the furniture or contents, that you own, and that produces your income.

Loan Origination Fees - Banks love to charge you fees…lots of fees. This can range between $600-$1500. So when you start talking with a lender, ask up front… what they charge for loan origination, before you submit an application.

Title Insurance - Because someone may have a lien, on the property, prior to you buying it, and could possibly… legally take it. Owners' title usually starts at around $1000.

Homeowners Insurance - paid at closing, for a 12-month period. The national average is around $1500 a year.

HOA Docs - If you are in a Home Owners Association, this fee can range from $200-$300.

Title Services - These are what I call nickel and dime fees:
Escrow fees
Title fees
Title Abstract review fee
Proceeds dispersant fee
Attorney opinion letter
Archival fee
Recording fee at the courthouse
Currier fee 
E-filing fee
Title Company fee 
or Attorney fee 
All these could add up to $1000.

Disclaimer: All information given in my videos is meant to be educational. This video is not intended to replace your research, nor to provide legal, investment or financial advice. For legal advice consult a lawyer.

[desertdogdan]

I am 73 and a Vietnam veteran. I own my home that I bought for 80k ten years ago. I live in what could be thought of a slum and I have learned to accept that and just focus on my own property. My taxes and home insurance are less than 1k per year. I am happy with having only the things I need and I don’t yen for keeping up with the Jones’s! My home is well kept, energy efficient and low maintenance. The only income I have per month is less than $1500. I have free medical care from the VA with no copays. I maintain a car and pickup and don’t want to buy anything new as they are in perfect running condition. I manage my income and savings to be prepared for any emergency expenses. I established all this security for myself with no more than $200k! I think the average American doesn’t know the simple fact that: “ it’s not how much money you have, rather it’s how you spend it!” A very simple philosophy that more seniors need to look at seriously!

[susanpixley]

We paid cash for our house, no mortgage. Our previous home was a mobile home, so getting the loan was the same as buying a car. I've always heard of all the fees involved in mortgages, so we saved up the money to pay cash! It was so very easy. And, in New York there are no titles, a home buyer gets an abstract. This is the same thing as the title search. The abstract shows every owner of the home from the first owner. When we sell, we turn over the abstract to the attorney, and he adds the new owner, and gives them the abstract. Buying our home took minutes, not months! I will never have a mortgage.

[fashowallday]

Wow, I figured I write these down to bring with me to grill my realtor, three pages latter I've got quite the document here. I haven't written this much on my kitchen table since grade-school (I'm lying I never did my homework).

[GuitarsAndSynths]

Also home inspectors often miss key things. Next time I buy a home, I rather hire my own plumber, HVAC, roofer and electrician to dig deep for key issues. Having owned my first home now for 2 years the plumbing and sprinkler leaks have been the biggest repair issues. Also windows are very expensive to replace as fencing! But no home inspector pays much attention to these things. Buy smaller less expensive home because taxes, higher utility bills for water/sewer, gas and electricity plus repairs/maintenance add up fast so you need to afford it.

[steveelps]

Just sold my house. It was on the market for one day and received more than my list my price. I took your advise and made sure my house was ready. Changed all the bulbs, made sure everything looked sparkling clean. Thanks for the tips. My goal is to purchase next house cash only..NO more mortgages!!! I will keep watching your videos.

[gordons]

This is a gold mine of information - thank you Jerry!

[oldsesalt]

In the snow belt if they have onsite heating fuel like oil or wood or propane or pellets, then you are supposed to pay that separately. That is considered personal property outside the sale of the house and you are required to reimburse them for it. I didn't learn that until closing day.

Also anything that is bolted down is part of the house. If it is electrical and hard wired, then it is sold with the house. My parents learned this when they bought a home with a lovely chandelier. On closing they found the sellers had removed the chandelier and replaced it with a piece of crap. They objected and the sellers found that they had sold the chandelier along with the house.

[Puddycat]

I usually never share videos but yours I do. And of course I subscribed, liked and commented. Thank you, you are truly a credit to your profession. I appreciate all the important information you provide

[ronaldmiller]

Good advise Jerry I can't believe how low property taxes are in South Carolina.

[GregSmith-pbgh]

Wow I knew taxes in the south were a lot less than here in the northeast but 10 times lower!!! Great things to know, thanks.

[jaxen-x]

My wife and I are Canadians in the early stages planning for our eventual retirement and we come across your channel and enjoy your content providing your insights regarding real estate in the Myrtle Beach area. We recently visited our American friend who lives in the Del Webb community and fell in love with the area. We are only in the early stages of considering to purchase a retirement home but not to say we looking to live in the Del Webb community; but rather, looking to stretch our money because we need to consider the exchange rate to US$. Would it be possible you can make a video for Canadians (aka - Snowbirds) who are considering Myrtle Beach as a viable seasonal retirement home?

[vladimirtalijan]

I moved from Europe recently and it's incredible how many made up fees Americans pay for everything :) :)

[edp]

How about a fee or sur tax for foreign investors .

[Puddycat]

Home inspectors are horrible, they never find anything . Then later all the issues show up. I’ve heard other ppl say the same.

[huseman]

can anyone explain why property taxes exist? Im sure ww2 is way over.

[saraf]

You are always promoting South Carolina and discrediting other states in name of your business. Its getting annoying and old. Just be clear upfront and say I am here to promote my business then move on to video

[Chris-bnbn]

I don't know if that's your usual filming location but if it is, lose the 1970 wall paper that's peeling off the wall and maybe people will take you seriously