Palm Beach Homes - 18 Extra Costs
“Buying a new home is costly! If your new to the home buying process, you need to read below. Find out how you can save you thousands of dollars and understand the home buying process before you buy."
1. Moving Costs 
Moving companies can be expensive.
- $140/hour for a van and 2 movers is average for Palm Beach County
- Rates may raise during peak seasons, depending upon supply & demand
- For long distance, beware of a per mile fuel surcharge
2. HOA's- Home Owners Association
Home owner's assessment fees can range depending on the community (if applicable). Condos typically charge monthly common area maintenance fees for cleaning pools, landscaping & exterior building up keep.
3. Well and Water Inspection
Does the your new home have a well? If so, your lender may require a clean water compliance inspection to protect yourself and the lenders risk. Water inspections are typically around $400 is normal for Palm Beach County. Fixing a well that has poor or contaminated water quality is very expensive, buyer beware, get a clean water inspection done reagardless if the lender requires it.
4. Septic inspection
If you home is not hooked up to munical sewer, Lenders will want you to have an inspection done on the septic system to minimize your risk and theirs, since replacement is so costly. Keep in mind that pumping a septic tank costs money, typically around the $200 range in Palm Beach County plus inspection costs around the $350 price point.
5. City Improvements
Ask your local township or city hall if there are future plans for new sidewalks, streets, or sewer mains. Typically the home owner is responsible for these assessments. Even though they can be made in payments, these assessments can cost thousands of dollars, and are non negotiable.
6. Appraisal Fee
Appraisals are ordered by the bank and sometimes even the consumer so the bank can make sure they are lending on a property that has enough money down and other criteria is met. Guess what? The bank passes the fee onto the buyer, typically $450 for Palm Beach County, however more than $250,000 will cost more, especially homes in excess of $1,000,000.
7. Survey Fee
Survey's are a wise desicion when you are in question of the property line. Do not ever mistake telephone polls, trees, or sidewalk markings as the lot lines. The only proof you have of a property line is to hire a certified Florida Surveyor. Prices widely vary in Palm Beach County but will start at $600 and up.
8. Home Owners Insurance
Your local insurance agency can give you the best rates if you can get multiple discounts. Typically rates are going for $2,000 annually for $200,000 worth of replacement value. Lenders require home owners insurance to protect their risk & yours. Its a smart idea to add on the extras offered by your insurance agent, so you are well covered to protect your asset.
9. Setup Fees (movers tax)
Internet connections, cable hookups, telephone hookups are all setup fees that you may incur after closing.
10. PMI - Private Mortgage Insurance
PMI is required when a borrower does not put down 20% of the homes value or mortgage amount. PMI typically costs $50 per $100,000 borrowed. PMI is typically escrowed into your monthly loan payment amount.
11. Property Taxes
Are you going to have your Property Taxes escrowed into your mortgage payment? Or are you going to pay them quarterly out of pocket, semi-annually, or annually? If your property taxes are not added to your monthly payments, you may be surprised when the bill comes towards the end of the year! No payment results in interest accued, and ultimately the government may cease the property.
12. Legal Fees
Florida Realtors are allowed to draft on state approved forms only. In case an issue needs to be resolved such as an easement or encumberance to the property, a real estate attorney needs to draft the necessary documentation, since that is legally out of the Realtors scope.
13. Mortgage Brokers Fee
Mortgage Brokers are generally great to work with, since they are on commission only. They don't get paid unless the loan closes, which is great for the buyer. The mortgage broker will work fast ensuring all i's and t's are cross, and that closing happens on time. Mortgages Brokers may sometimes try to charge the buyer a fee, however, in Palm Beach County FL it is the norm for Mortgage Brokers to provide their service for free to the buyer with the Mortgage Brokers commission built into the interest rate; much like any other bank.
14. Recoding Fees
The attorney or title company that closes the transaction usually takes care of the recording at the courthouse for a fee.
15. Impact Fees
This is a fee in addition to a building permit for new construction. The fees can vary widely but typically are $1,000 and up. Impact fees go to the township for parks, ect.
16. Buyer Broker Fees
Most buyers prefer the agent they are working with "represent them". Some brokers or agents charge a buyer broker fee in addition to seller compensation, some agents are worth it, while others are not. Brokerages may even charge a fee of $400 to view properties and credit the money back at closing; fair for both parties in a perfect world.
17. Save for Repairs
Home buyers should save 1% annually of their homes value for future maintenance & repairs.
18. Home Inspection
Worthington Realty International recommends Home Inspections on all properties. Prices range from $450 and up depending on the size of the home, the number a appliances, the number is living units can play a role in the price. Home Inspectors typically will take digital photos of defects and include them with the home inspection report with a detailed explanation.
