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Call Cara Mancuso, REALTOR®, at (520) 909-2988
 
 
 
 
 
 

Buying a Home - What Does It Cost?


EXPENSES INVOLVED IN

BUYING A HOME

 

Here’s a summary of some of the items you can expect during your escrow process and the approximate cost to you when buying a new home in the Tucson area.

1.     Earnest money
Don’t confuse this with “down payment”.  When you submit your offer to the seller, you’ll be asked to make a good faith offer that shows the seller that you’re a serious buyer.  There isn’t a set amount, but often 1-3% of the price of the home is a fair estimate.  If your offer is accepted, your check will be deposited into an escrow account by a third party – an escrow company. This money will be applied towards the purchase of your home.  You can specify to have it credited towards your down payment, if you wish.  If your offer is not accepted, your check will be returned.

2.     Home Inspection

As an agent, I recommend you ALWAYS have a qualified home inspection completed. I am happy to recommend several trusted professionals.  The inspector checks your home from top to bottom and informs you of what items are NOT covered by the inspection.  If there are any additional concerns, your home inspector will recommend FURTHER inspection – such as mold, roof, structural engineer, etc. You will receive a written report, as well as a visual walk through upon completion of the inspection.  An inspection can cost you approximately $250 to $500 depending on age and size of the home.  Sometimes this fee can be paid out of COE, or closing costs when you sign for your home.

3.     Termite Inspection

There’s a quote in Tucson.  “Your home either HAS termites, or WILL HAVE termites.”  ALWAYS get an inspection.  If it is a newer home, the presence of termites may be covered under the builder warranty.  Often, a lender will not fund a home without termite resolution. You will receive a written report.  The cost of an inspection can run $40-$75.  Again, sometimes this fee can be paid out of COE.

4.     Miscellaneous Inspections

When you are buying a new home in Tucson, or anywhere, you are put into a “buyer beware” situation.  Your agent will give you a list of buyer advisories to help you in your process. It is up to you to check out any conditions of importance to you.  Your agent will secure the SPDS and CLUE report, if available per the contract. (Seller’s Property Disclosure Report and insurance claims history)  Some of the possible issues to inspect would be:  Radon, septic, lead based paint, mold, Chinese drywall, foundation, asbestos, and more.  The price for each inspection can greatly vary, but it is best to discuss the necessity of such with your agent.  Your agent can help you to locate qualified professionals.

5.     Appraisal
If you are obtaining a loan to purchase the property, your lender will require an appraisal.  This fee is generally paid at the time it is ordered.  You can expect to pay $350 to $600 depending upon the type of loan, and the property involved.  Your lender can explain this to you in detail during your pre-authorization process.

6.     Utility Deposits
If
you are a first time home buyer and have never had service in your name, you may be required to pay a deposit to the utility companies.  Also, if you are purchasing a SHORT SALE or REO property without utilities, an inspection to re-connect may be required. You may have to have to “de-winterize” . There may be connection fees. You will be required to have the utilities on for the inspection and appraisal unless you are paying cash. Deposit amounts can vary according to the Utility provider.

7.     Homeowners Insurance
Don’t forget to talk to your insurance agent!
 Often times, your first year of homeowner’s insurance will be pre-paid prior to closing.  These fees will come at COE and can be handled directly between you and your insurance company directly, if desired.  The cost of the insurance depends on your claim history, your carrier, your credit, the amount of insurance requested, liability, type and size of the property, construction, location, and many other factors.  Talking with your insurance provider ahead of time will be helpful in making your final decision in purchasing a home.

8.     Closing costs
There are a number of other costs that you will receive a good faith estimate from your bank, and HUD-1 from escrow.  They tend to be lumped into “closing costs”.  Some of these items are impounds and fees, loan origination fees, escrow fees, drafting fees, etc. When you receive these forms, it is good to go over them with your agent or the provider who issued the document.

Please contact me if you have any questions about possible expenses when purchasing your new home in Tucson, Marana, Oro Valley or Vail!