Estimating Costs When Buying a Home in Effingham County and Savannah

It’s common knowledge that purchasing a home entails a substantial cash outlay for the down payment and covering some closing costs. However, there are numerous additional expenses associated with buying a home, such as earnest money deposits, inspections, appraisals, and moving costs. The total expenditure largely depends on factors like the size of the home and the financing amount. Buying a home involves various expenses beyond the down payment and closing costs, highlighting the importance of estimating total costs before making a purchase. So before taking that big-money plunge, you should probably spend some time estimating costs when buying a home in Effingham County and Savannah.

1. Earnest Money Deposit

When submitting an offer on a home, it’s essential to be ready to provide an earnest money deposit. This deposit serves to demonstrate your commitment as a serious buyer, prompting the seller to suspend other potential deals. The specific amount of the earnest money deposit typically ranges from 1% to 5% of the sale price. An earnest money deposit is a vital aspect of making an offer on a home, signaling the buyer’s seriousness and commitment in Effingham County and Savannah.

2. Inspection

Amidst the excitement of purchasing a new home, individuals frequently neglect to account for inspection expenses when estimating the costs associated with buying a home in Effingham County and Savannah. However, if you’re financing through a lender, this expense is unavoidable. Typically, the inspection occurs within 10 to 15 days of contract approval. A comprehensive home inspection can cost upwards of $300. Inspection expenses are often overlooked in the home buying process in Effingham County and Savannah, but they are a necessary cost, especially for those financing through a lender.

3. Appraisal

If you’re not paying in cash, another unavoidable cost arises as your lender will require an appraisal. Occasionally, sellers may cover some or all of the appraisal fee, but this isn’t guaranteed. Moreover, the cost of the appraisal is often included in the closing costs – although it may be hidden this way, you’re still responsible for payment. Generally, an appraisal will set you back at least $400 or more. An appraisal, required by lenders for non-cash buyers, is an additional cost to consider when purchasing a home in Effingham County and Savannah, typically priced at $400 or higher.

4. Closing Costs

And, of course, you have to factor in closing costs. While it’s true that sellers, in rare instances, may offer to pay the closing costs to make the sale more attractive, more often it’s the case that they’ll pay only a portion if any at all.

These closing costs are third-party and lender fees that you pay when the transaction is finalized and they can include fees for wire transfer, survey, underwriting and origination, credit reporting, document preparation, title insurance, and recording. Closing costs generally run in the range of 2% to 4% of the sale price – a pretty substantial amount, actually.

5. Moving Expenses

When estimating the costs when buying a home in Effingham County and Savannah, many people neglect to figure in moving expenses because they aren’t part of the actual purchase. Still, it’s something you’ll have to pay even if you’re moving to a new home within the same neighborhood.

If you don’t have a truck and/or a trailer and some energetic help, you’ll probably have to hire a professional mover, especially if it’s a long-distance move. If the move isn’t all that far, say, within 20 miles or so, you’re looking at around $1,000. If you’re relocating across the country, it could run you as much as $5,000 or more.

So if you’re moving to another state, it’s probably a good idea to sell as many of your larger possessions as is feasible. In some cases, for a truly long-distance move, it can be cheaper to buy new furniture for your new home than to pay for moving your current furniture.

While assessing the expenses involved in purchasing a home in Effingham County and Savannah, it’s crucial to extend your considerations beyond the down payment and closing costs. Fortunately, there are alternative home-buying options available that could substantially reduce your upfront expenses. Beyond the down payment and closing costs, exploring alternative home-buying options can help buyers in Effingham County and Savannah minimize upfront expenses.

Let me help you with a fast, easy solution that will allow you to keep more money in your pocket when you move into that new home. To discover how just give me a call at (912) 695-6932 or fill out the form.

Connect With Me!

If you're looking to buy or sell a property connect with me today!

How Can I Help You?

I would love to hear from you! Please fill out this form and I will get in touch with you shortly.
    (check all that apply)
  • This field is for validation purposes and should be left unchanged.