When you are buying a condo, it is important to be aware of all the associated costs. There are many hidden costs that can add up, and if you’re not prepared for them, they can catch you by surprise. This blog post will discuss some of the most common hidden costs that are not displayed in condo MLS listing. By knowing what to expect, you can be better prepared to handle these additional expenses!
One of the most common hidden costs associated with owning a condo is the monthly HOA or condo fees. These fees can vary greatly depending on the size and amenities of your condo complex, but they will typically be several hundred dollars per month. In addition to these monthly fees, you may also be responsible for special assessments from time to time. These assessments can be used for things like repairs or upgrades to the complex, and they can be quite expensive. Be sure to ask about HOA/Condo fees when you are considering purchasing a condo so that you can budget accordingly!
Another hidden cost of owning a condo is property taxes. The amount of property tax you will pay will depend on the value of your condo, but it is important to budget for this expense. In addition to property taxes, you may also be responsible for other taxes, such as state and local taxes. Be sure to ask about all potential tax implications when you are considering purchasing a condo.
Another hidden cost of owning a condo is insurance. You will be required to carry both homeowners insurance and liability insurance. The amount of coverage you will need will depend on the value of your condo, but it is important to make sure you are adequately covered in case of any accidents or damage.
Special Assessment Fees:
As we mentioned earlier, one hidden cost of owning a condo is special assessment fees. These fees can be used for things like repairs or upgrades to the complex, and they can be quite expensive. Be sure to ask about special assessment fees when considering purchasing a condo so you can budget accordingly!
Finally, another hidden cost of buying a condo is closing costs. These costs can include things like appraisal fees, loan origination fees, and title insurance.
Mortgage Origination Fees:
In addition to the standard closing costs associated with purchasing a condo, you may also be responsible for mortgage origination fees. These fees can vary depending on the lender you use, but they are typically a percentage of the total loan amount
When you purchase a condo in Idaho, you must also purchase title insurance. This insurance policy protects you against any claims that may arise from someone else claiming ownership of the property. The cost of title insurance can vary, but is typically around $1000.
Often times, when you purchase a condo in Idaho, the developer will require that you get a property survey. This can cost a few hundred dollars and is generally not included in the condo’s purchase price. This is a mandatory fee that the buyer must pay in order to obtain a clear title to the property. The survey fee can range from $300 to $1000, depending on the size and location of the property.
Another hidden cost of buying a condo in Idaho is the home inspection fee. This is a fee paid to have a professional inspector come and look at the property to ensure that it meets all of the building code requirements. The inspection fee can range from $200 to $500, depending on the size and location of the property.
If you are not putting down 20% when you purchase your condo, you will most likely be required to pay for mortgage insurance. Mortgage insurance is an insurance policy that protects the lender in case you default on your loan. The premium for this insurance is generally added to your monthly mortgage payment. The cost of mortgage insurance can vary, but is typically around 0.50% of the loan amount.
Another hidden cost of buying a condo in Idaho is the appraisal fee. This is a fee that is paid to have the property appraised by a professional appraiser. The appraisal fee can range from $200 to $500, depending on the size and location of the property.
Discount points are a type of prepaid interest that you can pay at closing in order to lower your interest rate. One discount point is equal to one percent of your loan amount. For example, if you have a $100,000 loan and you pay two discount points, you would be paying $2000 at closing. Discount points can save you money over the life of your loan, but they are an upfront cost that must be paid at closing.
If you are considering buying a condo in Idaho, it is important to be aware of the potential hidden costs. By understanding these costs ahead of time, you can make an informed decision about whether or not purchasing a condo is the right choice for you.