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HIDDEN COSTS of buying a home: What you really have to pay! - YouTube
Channel: Homebuyer's School
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- In this video, you'll learn about
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hidden and additional
costs when buying a home,
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such as lawyer fees, home
inspections and more.
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That's starting right now.
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- [Announcer] Welcome
To Homebuyer's School,
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brought to you by Brookfield Residential.
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(upbeat music)
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- Hi everyone, I'm Karl.
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Welcome to another
Homebuyer's School video,
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a channel where you get the latest
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strategies, tactics and tips
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to help you with your home buying journey.
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Now remember if this is your
first time on this channel,
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and you wanna get the latest
strategies from the experts,
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hit the subscription button below.
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Hit the little notification bell
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so you don't miss anything.
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So today I've got a special guest.
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I've got local realtor Brad McCallum
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from RE/MAX First.
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And the topic we're gonna answer today is,
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what are the hidden
costs when buying a home?
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- When you go and you buy a home,
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people are often sort of laser-focused on,
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"What's my monthly payment?
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"My costs and my mortgage?"
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And then there's things
like your property taxes,
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that are on top of it.
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Oftentimes when people move from say,
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the renting to home ownership,
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they're also going up in square footage.
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In moving to a larger space
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there's added costs for your heating,
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for your water, for your gas,
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for all those sorts of things.
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Those are costs that people
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don't really kinda
understand maybe up front.
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It's good to kinda go into it
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with an idea of what those costs will be.
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But then there's some other things
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that are a little bit less.
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They don't show up quite as apparently
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as on a ledger,
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and that's things like maintenance, right?
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As soon as you own your own home,
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there's everything from
maintaining your furnace,
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and changing furnace filters,
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and keeping your lawn presentable,
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and there's just home
maintenance that you need to do.
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Everything from your
gutters to checking your
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door lock sets.
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All these little tiny
things, they take time.
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It's just part of home ownership
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that a lotta people, they
don't really account for.
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- If you're buying condo,
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there is a different type of maintenance
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- For sure.
- Than you would a duplex,
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than a single-family.
- That's right.
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- And then up to a luxury rate.
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- A lotta times people
have this mistaken idea
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that a condo, or that the condo fees
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are just a cost
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that they have to pay each month
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for the privilege of
having these shared uses,
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or these shared spaces.
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But a big part of those condo fees
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can oftentimes cover
maintenance on your lawn,
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maintenance on the
exterior of the building.
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In some cases, it covers,
like your building envelope.
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These are all things that,
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if you owned a single-family home,
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you'd be responsible for maintaining
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and paying for anyways.
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It's just taking that cost,
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and rather than being saying
$15,000 to do your roof
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15 years from now, or ten years from now,
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it's going to be something that's
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amortized over those months.
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And because of that,
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condos oftentimes make
it easier for you to have
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something that you can expect
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each month for your costs.
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Every home, there is costs
involved with maintenance,
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whether they're in fees, or
they're bore by the end user.
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- And if you wanna know more about
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the differences between condos
and single-family homes,
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check with this video above
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and in the description below.
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I would also imagine that
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location plays a big part of costs.
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The hidden costs might
not be in the home itself,
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but it could be, let's say,
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your transportation costs.
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- A lotta times people,
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they think of like living right downtown.
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And so, okay, great.
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So you're saving a lot on
your transportation costs.
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But then you're often
paying a lot higher price
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per square foot for the unit,
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for the home itself.
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And then if you come out to the suburbs,
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you're generally gonna get
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more square footage.
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You're going to get a little
bit more room around you.
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And you're gonna get a little
bit more for your money.
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But you're gonna pay that
price then in transportation
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to your downtown.
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Those are some of the costs that
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people don't account for.
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It just comes down to each buyer.
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They have to really consider what
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their own personal needs are,
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and then they'll be
able to make that proper
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adjustment on what they value.
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- So as a realtor, have
you found differences
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when someone's buying a new
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versus a resale home
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in terms of the additional costs
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that they would have to pay.
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- Absolutely.
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All new homes going to come with
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a new home warranty.
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And that's really going
to protect the buyer
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for that first initial few years
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from any of the things that might pop up.
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So, some will be for five years.
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Some will be as much as 10 years
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on things like foundation
and the building envelope.
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But if when you buy a used home,
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you're now faced with the fact that
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you have to own all the
past owners' maintenance.
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And did they do it, or did they not?
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And so, as a realtor,
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one of the things that we need to do
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is help our clients find a home
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that is not just, meets their needs,
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but also understand whether or not
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it's been well-maintained.
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Understand if that roof needs to be done
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in a few years.
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Understand what costs
might be coming their way
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in the next, say, three to five years.
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So that way they
understand the full picture
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of what they're actually purchasing.
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That's also one reason why
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we recommend home inspections,
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so we can get a professional in there
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who sees this stuff every day
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and get their opinion on what
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those maintenance costs might be.
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- That would be an additional cost
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is the home inspection, right?
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- Yes, the home inspection,
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you're gonna be paying
anywhere from $450 to $550,
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but it's like buying insurance.
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It makes so much sense,
- Yeah.
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- I own life insurance but
I didn't die last month.
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Not a waste (both chuckling).
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It's what you want to
have that peace of mind
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when you're making a big purchase.
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- There is more to buying a home
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than just your mortgage, right?
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There's location, the type
of home you're buying,
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new versus used, right?
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There's all these different costs
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that people have to
understand that isn't just,
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"Hey, I got pre-approved,"
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or, "I got approved,
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"this is how much I'm paying."
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- Absolutely, and that's why
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you really wanna be working
with somebody you can trust,
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so you can have that
conversation with them and say,
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"Hey, I'm looking at this property,
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"or this area, or this community,
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"what are the things that
I'm not yet considering?
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"What are the hidden costs."
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If you have that conversation,
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they'll be able to tailor it
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to exactly whether or not
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it's an older home, a new home.
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Whether it's downtown,
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whether it's in the suburbs,
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just so you get the best information
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and so you can make a
good buying decision.
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- So the question of the
day I have for you is,
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did you incur any additional costs
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when buying your last home?
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Let us know in the comments section below.
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So if you wanna know more
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about the costs of owning a home,
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check out this playlist here,
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as well as additional
home buying videos here.
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Don't forget to subscribe
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and I'll see you in our next video.
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