Author: Sponsor

This week’s Q&A column is sponsored and written by Darlene Duffett of Corcoran McEnearney, the leading real estate firm in Alexandria. To learn more about this article and relevant Alexandria market news, contact Darlene at 703-969-9015 or visit her website, darleneduffettrealestate.com. You may also submit your questions to Corcoran McEnearney via email for response in future columns.

Question: I’ve heard there are lots of hidden costs when buying a home. Can you tell me what they are?

Answer: When most people start their homebuying journey, they tend to focus on the headline numbers—purchase price, down payment, and mortgage rates. But there’s a whole category of additional costs that some people like to consider “hidden” costs. But after reading this article you will now know them, so they will not be “hidden” anymore. I’m hoping this helps buyers be prepared and not surprised as these expenses aren’t necessarily secret, but they’re easy to overlook if you’ve never gone through the process before. The good news? With a little planning and guidance, you can stay ahead of them and move into your new home with financial confidence.

INSPECTION COSTS

One of the first out-of-pocket costs you’ll encounter is the cost of any inspections. This can include, but is not limited to, home inspection, wood destroying insect inspection (often called termite inspection), radon inspection, mold inspection, chimney inspection, sewer scope inspection, and well or septic inspection (which we don’t encounter often inside the beltway).

As you construct your offer to purchase a home you may include one or some of these. We have seen them far less in the last few years with the competitive market but if the market shifts, we will see more. The most common type of inspection is the home inspection. A typical home inspection is performed by a licensed inspector who will assess the condition of the property and look for issues that could end up costing you money if left unaddressed—things like roof problems, foundation cracks, outdated electrical systems, or plumbing issues. These can add a few hundred dollars to your upfront costs, but they’re well worth it for peace of mind. It’s tough to list prices for each of these inspections as they are based on the size of the home or system, but a typical home inspection can run from $300 for a 1-bedroom condo into thousands for luxury homes.

HOME APPRAISAL

Another expense that could catch buyers off guard is the home appraisal. If you’re financing your purchase with a mortgage, your lender will most likely require an appraisal to confirm the value of the home. This protects both you and the lender by ensuring the loan amount aligns with the property’s market value and the bank will only lend on the appraised value. Although it’s part of the loan process, the appraisal fee is typically paid by the buyer out of pocket and usually ranges between $500 and $800 or higher for luxury properties.

On occasion the lender may be able to obtain an appraisal waiver if the property is valued under one million dollars. Many factors play into this as the loan is run through an Automated Underwriting System, and there are many requirements including percent down, credit score, income, debt-to-income ratio, and if it is a primary residence or secondary home.

CLOSING COSTS

Perhaps the most significant hidden costs are what’s known as closing costs. These are the fees and charges associated with finalizing the home purchase, and they can add up quickly. Closing costs usually include things like loan origination fees, title insurance, title search, escrow fees, attorney fees (if applicable), transfer taxes, and prepaid expenses such as homeowners’ insurance and property taxes. In our market, buyers can expect to pay between 2% and 4% of the purchase price in closing costs. On a $600,000 home, that’s anywhere from $12,000 to $30,000—an amount that should be factored into your homebuying budget.

MOVING COSTS

Once you’ve made it through closing, it’s time to move—and that comes with its own set of expenses. Moving costs vary greatly depending on how far you’re going, how much you’re moving, and whether you hire professional movers. Local moves may cost a few hundred dollars, while long-distance or full-service moves can run into the thousands. Don’t forget to consider other move-related expenses too, such as storage fees if you’re in transition, utility connection deposits, or temporary lodging if your move-in date doesn’t line up perfectly with your closing date.

IMMEDIATE HOME EXPENSES

Immediate home expenses are usually personal decisions if your home is not new or move-in-ready. Decide what you can live with for a little while or if it is something you can do yourself in your free time. These can include new appliances, painting, replacing flooring, window treatments, or updating fixtures. You might need to buy basic tools, lawn equipment, or hire landscapers to maintain the property if you are moving from a condo to a detached home.

Personal Note: The first thing I recommend is having the locks changed right away for security. You have no idea what neighbors or friends have keys to your home.

HOA OR CONDO FEES

If you’re buying a home in a planned community, condo building, or townhome development, you’ll also need to pay for Homeowners Association (HOA) or Condo fees. These are recurring fees that cover the maintenance of shared spaces and amenities. In some cases, they also include services like snow removal, trash pickup, or exterior maintenance. HOA dues and condo fees can vary significantly—from as low as $50 a month to several hundred dollars—and should be factored into your monthly budget just like utilities or a car payment.

In the end, buying a home is a powerful and rewarding step toward building long-term wealth—but it’s also a financial commitment that extends beyond the purchase price. By budgeting for these ahead of time, you’ll not only be prepared—you’ll be positioned for success and stability in your new home.

If you’re starting the homebuying process and want expert guidance every step of the way, I’d love to help! From budgeting tips to referrals for trusted lenders and inspectors, I make sure my clients have the full picture—so there are no surprises, just smart decisions.

Darlene Duffett is a licensed real estate agent in Virginia with Corcoran McEnearney in Old Town, Alexandria. She is licensed in Virginia and Washington, D.C. She has built a reputation of partnering with her friends and clients throughout the home buying or selling process. If you would like more information on selling or buying in today’s complex market, contact Darlene at 703-969-9015, [email protected], or visit her website DarleneDuffettRealEstate.com.

If you would like a question answered in our weekly column or to set up an appointment with one of our associates, please email: [email protected] or call 703-549-9292.

Corcoran McEnearney, 109 S. Pitt Street, Alexandria, VA 22314, corcoranmce.com. Each office is independently owned and operated. Equal Housing Opportunity.

This week’s Q&A column is sponsored and written by Hope Peele of The Peele Group and Corcoran McEnearney, the leading real estate firm in Alexandria. To learn more about this article and relevant Alexandria market news, contact The Peele Group at 703.244.6115 or email [email protected]. You may also submit your questions to Corcoran McEnearney via email for response in future columns.

Question: What’s the deal with buyer love letters?

Answer: I’ve had a lot of questions lately, from both buyers and sellers, about buyer “love letters”.

Many sellers I work with are curious about buyers who might be purchasing their home, and sometimes buyers are hoping that a letter from them will encourage the sellers to choose them and help seal the deal.

Reading buyer letters, however, can come with many hidden risks that home sellers might not expect. Here are a few examples of statements that might seem harmless, but in fact tell the seller about characteristics that are protected classes.

“We can already imagine opening presents beneath the Christmas tree, in front of that beautiful bay window, and hiding Easter eggs in the lovely yard.”
Religion – While this doesn’t mention an exact religion, the holidays are typically Christian and can give the impression that this buyer is Christian.

“This cul-de-sac will be perfect for us to teach our daughter to ride her bike.”
Familial status – Some sellers would love for the home in which they raised their own children to go to another family with children. However, it is a fair housing violation to pick a buyer based on whether or not they have children.

“My wife and I just graduated from Bryn Mawr and can’t wait to make this our forever home!”
Sexual Orientation – The fact that both members of this couple graduated from a women’s college might be a reference to their sexual orientation. A person’s actual, or perceived, sexual orientation is a protected class. If there is any indication of the sexual orientation of the couple purchasing the home, it could be a red flag for housing discrimination.

“I grew up in Hong Kong, and my parents, who still live there, would love to stay in the guest suite when they are visiting.”
Nation of Origin – This statement doesn’t necessarily confirm national identity, but this is a protected class. What’s important to remember is that any perception of preferential treatment could be a minefield for fair housing violations.

“This location is perfect, since it is just a few blocks from our Temple.”
Religion – You probably guessed this one! Even if there are multiple local temples, and this doesn’t necessarily indicate a specific religion, a seller should not give the impression that they are favoring buyers who have a religious practice.

Any photos!
They say a picture is worth a thousand words, and in this case, it could be worth thousands of dollars! It might be nice to see a cute family who will potentially be taking over the care of a beloved home, but it is never a good idea to look at photos when deciding which offer to accept. In Virginia, the protected classes are race, color, religion, national origin, sex, elderliness, familial status, source of funds, sexual orientation, gender identity, military status, and disability. Any one of these could be indicated in a photo.

Keep in mind that fair housing discrimination applies whether you are discriminating against someone, OR choosing someone because of their status. Think about it this way. If you also grew up in Hong Kong, and love the commonality between you and the potential buyer, it would be discriminatory against everyone who is NOT from Hong Kong.

It is also important to remember that this information could come to a seller by means other than a letter from the buyers. If a seller waits outside in their car while visitors come to view their home, that can also open the door to all kinds of potential accusations of discrimination. For this reason, I always advise my sellers to stay as far away as possible when showings are scheduled.

As a buyer, it is important to remember that there are many other things that you can do to appeal to a seller. Accommodating their timeline or putting down a higher earnest money deposit are both much better ways to give yourself a competitive advantage!

We love working with both sellers and buyers, and can help you navigate this sensitive aspect of real estate. Please give us a call or email if you have any questions about this topic!

Hope Peele is a licensed real estate agent with Corcoran McEnearney in Alexandria, Virginia. She grew up in Old Town and currently lives in Del Ray. As a partner with The Peele Group, Hope is dedicated to guiding her clients successfully through the many-faceted process of buying or selling a home. Contact Hope at 703.244.6115.

If you would like a question answered in our weekly column or to set up an appointment with one of our associates, please email: [email protected] or call 703-549-9292.

Corcoran McEnearney, 109 S. Pitt Street, Alexandria, VA 22314, corcoranmce.com. Each office is independently owned and operated. Equal Housing Opportunity.