Upstate Buyer: Top 6 home buyer costs in The Catskills and Hudson Valley
Top 6 home buyer closing costs in The Catskills and Hudson Valley
BY JENNIFER GRIMES
Getting the keys to your dream home involves more than just coming up with the down payment. Here are the most common costs home buyers in The Catskills and Hudson Valley will encounter, including specific dollar amounts. These reflect actual expenses from recent transactions, but please note, each deal is different and your experience may vary. I’ve excluded mortgage-related fees which we’ll cover in a separate post.
Top 6 closing costs when buying a home:
Home Inspection (including radon and water tests): This will run from about $800 - $1,000, but of course the size and type of house and any outbuildings can impact this figure. You may want additional inspections like septic (from $500-800), chimney, mold or pool.
Title Search + Title Insurance: Your attorney will order a title report for you, to uncover any unexpected outstanding liens against the property. The report will highlight any use restrictions, easements, etc., and will identify any open building permits with the town that need to be closed out. Then they have you pay for title insurance in case they missed something. On average you’re looking at $2,600-3,000, including the insurance. (FYI, I noticed a couple of price outliers, and that could be due to buyers using attorneys not from the area, who in turn are hiring title companies that are charging more than is usual for our region. This is just one more reason to use a recommended local attorney.)
Attorney Fees: On average, $1,500 for straightforward deals.
Taxes: Buyers reimburse sellers for property taxes (school and town/county) they have already paid. This will be pro rated down to the closing date.
Fuel (and wood): Sellers will be reimbursed for on-hand fuel, and possibly fire wood.
Homeowner’s Insurance: Estimate $1,200-1,700 for a $400k-700k home. Use Forbes's home insurance calculator for more precision.
Additional Possible Closing Costs:
The following are some potential expenses, which would be outlined in the closing statement provided by your attorney.
• HOA Fees: If buying within a community, expect to cover the dues.
• Mansion Tax: NY State imposes fees for homes sold for $1m and above, starting at 1% and up.
• Recording Fees: Typically $75-200 for recording your deed, and I’ve included that in that title report fee above.
• Survey: Not all homeowners have a survey. Until about 10 years ago it was common for a sale to occur without a survey, or at least without a recent one. Now banks will almost always require a new or recertified survey. Prices can vary widely. But assume from $750 up depending on the lot size and terrain for a property of at least a few acres. This is a cost buyers have the privilege of covering.
So excluding financing-related costs, this is a summary of common closing costs and upfront expenses home buyers can expect when purchasing a home in The Catskills and Hudson Valley.
Ready to make informed moves in The Catskills and Hudson Valley? Let’s get started!
Jennifer Grimes is the Broker / Founder of Country House Realty.