What You’ll Pay Before Closing Day

Buying a home is an exciting journey, but many buyers are surprised by the money they’ll need to spend before they even make it to the closing table. While most people budget for their down payment and closing costs, there are several upfront expenses that can add up quickly. Here’s what you should be prepared for:

1. Gas & Travel Costs

Unless you’re buying the first home you see (which rarely happens), expect to spend time and money driving between showings. If you’re looking in multiple areas or touring homes over several weeks, gas costs can add up.

2. Earnest Money Deposit (EMD)

Once your offer is accepted, you’ll need to put down earnest money—essentially a good faith deposit to show the seller you’re serious. In our local market, this is often 1% or more of the accepted offer price. This money is usually applied to your closing costs or down payment but will need to be available upfront.

3. Appraisal Fees

Your lender will require an appraisal to determine the home’s value before approving your loan. Some lenders roll this cost into closing, but many require payment at the time of service. Expect to pay at least $500, though online lenders often charge more.

4. Home Inspections (If Allowed)

Many buyers choose to inspect the home before finalizing the purchase. Here’s what different most common inspections might cost:

• Whole Home Inspection: $450+ (condos are often less)
• Sewer Scope: $250–$350
• Radon Test: $125 (If radon levels are high, an additional test after mitigation may be required.)
• Well Inspection (for rural loans): $250–$500
• Septic Inspection (for rural homes): $300–$500
• Termite Inspection: Around $100

5. Buyer Agency Fees

In the past, buyer’s agent commissions were largely covered by the seller. This means buyers often assumed they didn’t have to worry about paying for their own representation. It’s important to note that the buyer is still paying for representation, as it is part of the total that the buyer pays for the house, but the seller doesn’t keep that money. It’s confusing. I understand.

While many sellers, especially in lower price points (think under 250K-ish) are still offering to cover these fees, it is now a more defined point of negotiation. Instead of being listed in the MLS or assumed to be covered by the seller, buyer agency fees are now outlined directly in contracts.

When purchasing a home, you should be prepared to pay for your own professional representation. I created this flyer for those who would like to know more about how to pay for your representation.

Why These Costs Matter

While these expenses can feel overwhelming, they help protect your investment. An appraisal ensures you’re not overpaying, and inspections help uncover issues that could cost you thousands down the road. Planning ahead for these costs can help make the home-buying process smoother and less stressful.

In short, if you are looking for a home and preparing, plan to have at least a couple thousand dollars saved for these things. While there might be grants available for down payment assistance, you will still have some sort of financial outlay.

Also, sellers might be willing to help cover part of your closing costs (very market dependent). However, in a seller’s market, sellers have the upper hand and are often advised not to help out on this front.

*NOTE* In the event that the home you offer on does not go through to closing, you will still be responsible for the money you have paid out for inspections and perhaps the appraisal as well.

If you’re preparing to buy a home, connect with me about how to budget wisely and set yourself up for success!