Wednesday, February 8, 2012
12 Hidden Costs of Buying a Chicago Home!
Buying a home in Chicago can be a very exciting time, especially if you’ve been renting for a long time. You’re ready to have a place to call your own and looking forward to all the benefits of home ownership. Chances are, you’ve saved up for a hefty down payment and have carefully planned out your monthly budget... but are you completely prepared?
As the trusted team of advisors and Prudential Rubloff Real Estate agents at Shoreline Property Advisors, we are constantly helping people navigate their way through the Chicago Real Estate market and the financial aspect of buying a Chicago home. We want to make sure that you’re truly prepared for all the costs that can arise that you may not have considered. Take a few minutes to review these twelve hidden costs!
1. Home Inspection- It is a great idea to hire a professional to inspect a home before you purchase as they can bring your attention to any major or long term issues. Let us know if you need a recommendation for a Chicago home inspector; we’d be happy to help!
2. Pest Inspection- Buyers should consider having the wood of the home inspected for termites or other wood-destroying bugs. These inspections can run between $50-$200, but can save your home from further damage and larger costs.
3. Appraisal Fees- Before a purchase, your home must be inspected by a professional real estate appraiser as this helps lenders determine the amount of money to lend borrowers.
4. Closing Costs- At the final closing meeting in which you sign all documents, you should be prepared to pay closing costs which can be a few thousand dollars. These fees include processing fees, underwriting fees, recording, survey and title insurance fees. Many buyers roll these fees into their offer on the home and can be discussed with the seller and the participating agents.
5. Moving Expenses- Unless you are moving down the street, you will have to be prepared for moving expenses such as renting movers, a moving truck, and any possible shipping costs depending on how far you are moving.
6. Furniture- You may come to realize that in buying a bigger home, you’ll have space to fill. Buying additional furniture is an expense that can oftentimes be overlooked, but can be necessary in moving to your new Chicago home.
7. Property taxes and homeowners insurance- First time home buyers should be aware that your monthly bill will not only include the loan amount plus interest, but also the property taxes and premiums for homeowners insurance, which all mortgage borrowers are required to obtain.
8. Supplemental insurance- Buyers who are purchasing a home in a flood zone may have to buy supplemental insurance. There are tools online to help determine if your home is in a flood zone or we can discuss this as you view the homes in the Chicago area that interest you.
9. Homeowners association fees- There are many great condos in Chicago, some of which will have a monthly HOA fee. While you may not be keen on paying this additional cost, oftentimes it covers items such as trash removal, landscaping or even some utilities.
10. Utilities- These costs vary from city to city so it’s always good to expect to see a difference in monthly bills. We can help answer questions on the average costs of utilities in the Chicago neighborhood you choose!
11. Ongoing maintenance- You may love the thought of a large backyard, but keeping in mind the cost of maintaining your yard or garden. If you are buying your first home you may not have all of the tools such as a hedge trimmer or lawn mower to keep your Chicago yard looking fresh. Also keep in mind any type of exterior or interior maintenance you noticed about your new home and factor in the additional costs.
12. Repairs- Covering all repairs tends to be one of the larger transitional points for those first time home owners. It’s wise to set aside a small amount each month to ensure that if additional repairs are required, the funds are already in place to cover the extra expense.
Are there any of these costs that were a surprise to you? We hope that you’re now even more fully prepared to buy a home in Chicago! It’s a large decision to buy, but we know that once you find that home that fits your needs and lifestyle; you’ll be glad you did.
If you have additional questions about buying a Chicago home or haven’t found a Chicago Real Estate agent to help you in your search; let us know! We’d love to help you in your search and be with you throughout each step of the home buying process.
Shoreline Property Advisors
@ Prudential Rubloff