Blog: Pasadena Real Estate--Hidden Costs for Buyers

When purchasing Pasadena real estate, home buyers are sometimes surprised by the hidden expenses that come with the transaction. There are a range of paperwork fees and inspection costs that may sneak up on you. To be prepared for the full costs of buying Pasadena real estate, it’s best to know what to expect.

Some of the fees listed below will be wrapped into something Realtors commonly refer to as “closing costs.” Be sure to ask your real estate agent what you should expect in terms of closing costs, inspections, home warranties and more so you are not surprised by the final tally of your home purchase.

Pasadena real estate costs

Fees: There are a variety of fees that go into a Pasadena real estate transaction. For example, buyers typically cover the cost of notary fees, escrow fees, document preparation (when necessary) and recording charges for all documents in the buyer’s name.

Inspections: Generally, buyers will pay for a termite inspection and any other inspections they desire – roofing, overall home inspection, geological and so forth. These costs are expected to be paid by the buyer out of pocket, separate from the real estate transaction. Inspections are optional but strongly recommended to prevent a buyer from investing in a property with major problems without realizing it.

Earnest money: Most homes on the market will require “earnest money” when you make an offer. This amount varies, and is basically a deposit on the home. If you buy the home, your money is put toward the total, so it will go toward the overall purchase price of the home. If your offer is not accepted, the earnest money will be returned to you. If you change your mind about purchasing the home after your offer has been accepted, you could forfeit your earnest money. But if you have valid reasons – such as the inspections returning concerning results – it’s likely your funds will be returned.

Lending fees: Generally, there will be some new loan charges, interest on the new loan from the date of funding to 30 days before your first payment is due. Depending on how much you’ve put down on the property, you may also be required to pay mortgage insurance to your lender.

We’re writing a series of articles about real estate fees. Check out “Selling Pasadena Homes: The Hidden Costs” if you are a home seller to see what you might expect. Also, our article on Pasadena home inspections may give you more information about that phase of the purchase process.  And always talk to your Pasadena real estate agent to ensure you’re fully aware of all the costs you will be expected to pay.