Evaluation fee
Lenders will order a rating to assess the value of a home. The valuation fee may vary depending on the location of a property, the size and number of units involved. The typical fee range is between $ 200 and $ 700, but it can be higher. "For example, if you buy $ 6 million worth of property, you may pay a fee of $ 2,000 to the appraiser," Rodriguez said.
Among other things, the appraiser assesses the condition of the house. "If the appraiser requests that a problem be corrected, it is usually the responsibility of the seller," said Yecies.
Title search and insurance
To make sure there are no problems with ownership of a house or mortgage liens or judgments against it, a title search is performed. Buyers could, in theory, do this themselves by checking the public records. However, most real estate and mortgage brokers recommend hiring a professional. Title companies can charge between $ 150 and $ 500 for a title search.
Almost all lenders require property insurance as additional protection against potential disputes after the deal – this is usually paid for by the buyer with a one-time premium. The premiums can vary from a few hundred dollars to a few thousand dollars, depending on the state in which the purchase is made and the price of the property. Owner property insurance is optional but is often recommended. Many states allow you to search for the best deals. The American Land Title Association, a trade group, has a searchable database of property insurance companies by state on its website.
To confirm the boundaries of a property, a land survey is ordered. The cost also varies depending on the market. Professional surveys cost an average of $ 400 to $ 700, according to Quicken Loans. "If there is a survey that is 10 years or under, the title company may allow that survey to be used," Yecies said. “I always recommend that people do a survey. What if you have a border dispute with your neighbor over placing a fence or who owns a tree? "
Legal costs
Some states require buyers to have a real estate attorney on hand to complete the transaction.
As a rule, the lawyer reviews all necessary documents and records and advises on all questions. Legal costs vary widely, usually depending on the location and type of property purchased. Expect either a flat fee or an hourly rate, which usually starts at around $ 150 per hour. Some law firms may offer a discount when they are hired to represent a buyer in both a home sale and home purchase.
Other issues
A credit report is ordered to determine your creditworthiness. Some lenders can cover these costs; Otherwise, expect $ 30 to $ 50 per report. However, you could pay more if there are inaccuracies in a report that need to be corrected.
