Residential real estate purchases carry many costs

Many Massachusetts residents look forward to the day that they can step inside their newly purchased personal homes. For some it takes many years to get to that day because saving up enough money to make down payments can be significant undertakings. For those individuals who are interested in buying homes it is important to understand all of the financial costs associated with making a residential real estate purchase that go beyond simply having enough cash to put down.

First, several costs that are wrapped up in the purchase price of a new home often have to be paid upfront and by the buyer. For example, home inspections and earnest money deposits can cost several thousand dollars and though they eventually factor into a home’s purchase price, a buyer must be able to provide them long before the real estate transaction is complete.

Second, many new homes require work, improvements or at least appliances before their new residents can move it. Depending upon the condition of the home a buyer plans to purchase or the big ticket items it comes with it can take a lot of money and a lot of time to make a residence habitable.

Finally, before home buyers can take residence in their new purchases they must find ways of moving their existing possessions. Hiring moving companies, paying for moving supplies and even having utilities transferred or forwarded can add costs to a home purchase experience that some buyers do not anticipate.

Though some costs can be negotiated in the contract terms of a purchase agreement, home buyers are usually on the hook for substantial sums of money as soon as they make offers on homes. While the process of buying a new home can be intimidating, real estate attorneys can help prospective owners work through the steps of making offers and closing on the residential homes of their dreams.

Source: FOX News Business, “Hidden Costs When Buying a Home,” Dec. 9, 2013