Buying A House With Cash Dont Forget These Added Expenses

Dated: 08/31/2017

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There's no question that buying a house with cash will make you feel like a million bucks. Maybe you came into a large inheritance, or you're just really good at saving. Either way, paying the price of the home in full means you won't have to worry about making mortgage payments. Plus, sellers love a cash offer because it means they won't have to wait for mortgage lenders to approve your funding. High-fives all around!

You will, however, still be responsible for other costs that come with buying and owning a house. Don't forget about these expenses you’ll have to cover, even if you plan on financing the house with cold, hard cash.

Closing Costs

  • Real estate transfer taxes

  • Title insurance fees

  • County Recorder processing and filing fees

  • Appraisal fee

  • Home inspection fee

These fees could be as much as 3%

Property taxes

Even though you property is paid off, you'll still have to pay property taxes.  Check you local city and county websites to find out how much your local taxes are. you can also check with your real estate agent to get a copy of the current owner's tax bill

Homeowners insurance

Talk to your current insurer about the home and area you'll be moving into to get an accurate picture of your new insurance costs

Home maintenance

It's inevitable...  Things will eventually break, It doesn't matter how new they are.  You can put a little money aside each month or consider purchasing a home warranty, which costs around $450 a year.

Homeowners association fees

If your buying in a community with an HOA, consider that these communities could have monthly or annual HOA dues.  These fees can cost between $25 and $300 or more per month.


Don't forget to factor in utilities like gas, water, sewer, and trash.  

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Sheryll White

As a Full Time real estate agent for the past 23 years, Sheryll has helped hundreds of home owners in Colorado buy and sell their homes. Sheryll's easy going, no pressure style and her in depth knowl....

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