The True Cost of a Southern California Home

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What are the hidden costs in a home purchase? Once you've had your offer accepted, there are additional fees you are responsible for.

First, there are home inspections. A lot of buyers forget about the fact that they are expected to pay for the home inspection out-of-pocket. Sometimes there are additional auxiliary inspections, such as main sewer line or chimney inspections. All told, inspections can run from $1,000 to $2,000, so make sure you have that money in your savings account. These inspections are not mandatory, but we highly recommend having them done. A home inspection can save you tens of thousands of dollars in repairs down the line.

Buyers also need money for home maintenance upon close of escrow. Home maintenance includes cleaning, yard care, or pressure washing, just to name a few. These can add up quickly. In fact, the National Association of Realtors estimates that American homeowners pay an average of $3,500 a year to outsource home maintenance. Of course, it's cheaper to do it yourself, but you will still need some money. We recommend that our clients ask the seller how much gardening or pool services cost so you can factor it into your monthly payments. 

When buying a home, don't forget about utilities.  When you buy a home, ask the seller for a copy of the last two utility bills. If you can, get the bills for peak months in the summer and winter so you can plan ahead.

Finally, there are HOA and escrow fees that are the buyer's responsibility. As you can see, there are a lot of other costs to take into account when purchasing a home.

If you have any questions about today's video or real estate in general, give us a call or send us an email. We would be happy to help you!