Hidden Costs


There’s no way around it.


Buying a house is probably the most massive purchase a person will make in his or her lifetime. The price tag can get up into the hundreds of thousands (or millions) of dollars, and your loan will remind you of its presence every month for years. Don’t let the numbers scare you—purchasing a house can also be one of the best investments you ever make in your lifetime.


But there are costs—other than down payment—associated with buying a house that can be easy to forget about until you’re asked to write the checks for them. We don’t want you to be caught off guard, so here are three groups of costs to be aware of when buying a house.





  • Home inspection


According to the U.S. Department of Housing and Urban Development, a home inspection costs between $300-500. It will vary by type and square footage of your property, but it general falls within this range.


  • Termite inspection


At $25-50, this is a relatively small cost, but it’s still something to be aware of. Many loans require termite inspections, and honestly, we always recommend one—for your own peace of mind.


  • Radon gas inspection


This will typically cost you around $150. Radon gas isn’t something most people think about on a daily basis, but too much of it can increase your risk of lung cancer, so this inspection is worth every penny.


  • Other inspections: structural, HVAC, roofing


Some properties require more inspections than others, with a few of the most common being structural, HVAC, and roofing. It all depends on what the general inspector finds and recommends.



Closing Costs


“Closing costs” is the term for a dozen or so miscellaneous fees and taxes the buyer is responsible for beyond the base price of the property.


These costs vary depending on:


  • the purchase price of the home
  • property taxes
  • your home owner’s insurance premium
  • type of loan (Conventional, FHA, VA, etc.)
  • time of year (they’re usually less toward end of year, because you’re responsible for fewer months of that year’s property taxes)


The exact number will come from your lender, but a general rule of thumb is to expect to pay 2% of your home’s purchase cost.



Title Costs


The basic formula for determining title costs is:


the purchase price ÷  1000 × 5 + 100 = title costs


Keep in mind that Dwell agents can negotiate the transaction so the seller pays some or all of the title costs, so take advantage of our expert negotiation skills! We are here to make sure the numbers make sense and are in your favor as much as possible.



So there you have it: inspection, closing, and title costs are the main costs associated with buying a house that can often be hidden from view. When you’re asked to pay them, we don’t want you to feel blindsided. We want you to know you’re getting a fair deal on them. So, calculate these costs into your house-hunting budget and get searching for the perfect home! We’d love to help you at any point in your journey, so you can find the home that’s right for you.


Contact us here