Surprise Fees when buying a Home

Not the closing costs, not the costs that you need to pay when you’re in there signing a contract with title and escrow. These fees are the ones some Realtors seem to forget to inform their clients about, then suddenly there is a $500 charge here, and $150 there.

What do you need to pay in the first 10 days of your contract? Did you even know that you had to pay anything at the beginning of the contract? Well if you didn’t glad you’re watching this, and if wish you did and you found out after, sorry long to post this.

There are so many steps to the normally 30-day “under contract” process, that include the paperwork, deadlines, BINSR, appraisals, inspections and much more. A lot of people don’t realize the costs involved in the beginning of the whole process. These are some costs that you might not be aware of that I’m going to tell you about.

Obviously, every loan is different, but for the most part these things are going to be the first initial costs you have when you’re in the contract phase of buying a home. There are some major Milestones that you need to reach by certain timelines and the first on is a home inspection, done by a home inspector. The home inspector is a third party who comes in and inspects the home and gives you a report of the condition of the home. Because he is a third-party he needs to get paid at the time of service, and depending on the size of the home, if it’s a mobile home, if there’s a basement, if it’s an apartment or condo there’s varying prices and the inspectors all have varying prices themselves. There is the economic Bargain Basement appraisers and there’s the higher priced ones that have all the technology and all the equipment. Which one is better? Somewhere in the middle. Just because he has technology, and has all the equipment, doesn’t mean he really knows what he’s looking for or what to expect or inspect other than what his program tells him to check. The economy guy  won’t have the equipment that he needs to test things, you want to be tested, if there’s water stains will he be able to check if there’s moisture? Your realtor should have a couple people that they trust that will do a great job for you. Depending on your house size and your Inspector, general costs are between 200 and $500, while most homes are around the $300 range. Once the inspection is done thou then have to get the appraisal. The appraisal is also another 250 to $500, but check with your loan officer if you need a specific amount, they should be able to find out what the exact cost of that appraisal because they’re the ones that order them for you.

Those are the two main things and then there’s also termite inspection, at least here in Arizona it is a very good idea. Depending on what type of loan you’re getting it might be required. I always suggest getting termite inspection because in Arizona every house does eventually get termites. It is a great time when you’re buying a house to get it inspected so you don’t find termites a few months later. This is normally $50 -$250 depending on the size of the house, it can go up to $500, but that’s because of the size of the property.

If you’re not in Arizona you’re upfront fees might be a little bit different, so be sure to check with your local realtor, if you don’t know anybody get ahold of me. I know a lot of Realtors if I don’t know one specifically where you are, I know somebody who knows somebody that can refer you to a great realtor in your area.

A big one that I kind of skipped because your realtor should talk you about it, but I should mention it, the first very first expense is earnest money. The earnest money basically holds the house while it’s under contract so no other offers can be accepted or taken, and it shows the seller that you are serious about buying the home. The very first thing you need to do once the contract is accepted take it to title / escrow and have it processed, make sure you get your receipt!

So just a quick recap, here in Arizona the main upfront costs are your earnest money, your inspection cost, your appraisal cost, and your termite inspection if you get one. Also, don’t forget, there is a reinspection fee some inspectors will come out and inspect the home at no additional cost, including that in their initial price. The home appraiser sometimes needs to come back out to make sure some things were done and certified or repaired in order for their appraisal to be official and your loan to get processed. IE: They might have to come back out for a reappraisal if some roofing tiles need to be repaired and they put in their appraisal as condition they’ll come out inspect it make sure it was done and then check it off. Then you are good to go. That is all!

If you found any of this information helpful, please check out my videos and tips on my YouTube channel ( and definitely share this to anybody you might know that is about to buy a house in the market to buy a house or or just needs a realtor in general. I’m here in Arizona as always, I’m Agent Casey G and this is my Realty reality

I hope these tips are helping you out my goal is to share what knowledge I’m learning what information I find and share it with you so if you have any questions any concerns any anything I left out that you’re wondering about comment below check out my other videos as always, I’m always available for you to get ahold of me 24/7 thanks I’ll see you on the next video

Agent Casey G

(This Blog is a verbal transcript of my Video off YouTube)


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