When you begin your search for a Condo In Downtown San Diego, one of the most important aspects of the process is understanding all of the costs involved. Obviously, the “Purchase Price” of the condo is the primary focus of any buyers attention. However…there are many secondary and hidden fees that can add to overall “Costs” of the purchase. At 92101 Urban Living, we always help our buyers organize the fees and costs that are paid thru the escrow and the fees that are paid direct. Fees that are paid thru escrow may include: Escrow fees, Title fees, Homeowners Insurance, HOA Fees, Lender or Loan Origination costs, etc. Escrow fees are classified as either “Recurring or Non-Recurring”. The easy way to remember the difference is determining which are “one time” cost and which costs continue with home ownership. For example: Escrow and Title fees are one time fees for the transaction and labeled Non-Recurring. Things like HOA fees and property taxes obviously continue throughout home ownership and would be considered “recurring”. Fees that are paid direct by the buyer in a real estate transaction include: Appraisal, Home Inspection, any additional elected inspections.
-Buyers Agent: This cost is FREE to a buyer. Technically, the Seller pays the commission cost of the Buyers agent.
–Earnest Money Deposit: Until the removal of contingencies, the Earnest Money Deposit is a fully refundable deposit. It becomes part of the down payment when the buyer removed contingencies and decides to move forward with the purchase.
-Home Inspection: It is the buyers right to enter the property and perform a Home Inspection. This is always good money spent, as the home inspection is used to determine the quality and condition of the condo.
-Appraisal: The lender always requires a value appraisal of the condo in order to secure financing.
-Elected Inspections: Elected Inspections are those done above an beyond a traditional home inspection. They can include: Plumbing, roof, foundation, termite, etc. With regard to purchasing a condo in Downtown San Diego, these inspections are rarely part of the the transaction.
–Transaction Coordinator: There is a ton a paperwork in a traditional real estate transaction. It is always good to have a professional to help organize and prepare these documents for review and signature.
-Lender Fees/Loan Origination: Some of the highest additional cost involved with a purchase fall into this category. The costs of getting a loan can be as high as 1% to 1.5% of the
–Pro-Rated HOA Fees: Usually, the prorated HOA fees in addition to the first month of payments to the HOA. This way…a buyer will not have to worry about a payment until the second month.
–Home Owners Insurance: Always a cost of Home Ownership. The good news when purchasing a condo in Downtown is that a significant portion of the condo “master policy” is paid monthy in the HOA fees. As a result…Home owners insurance for a condo purchase is significantly less.
–Escrow Fees: Per common practice in San Diego, these fees are split by the buyer and the seller equally.
–Title Insurance: This is only a buyer cost when a loan is involved. The buyer will purchase title insurance for the lender on the condo.
-Property Taxes: A recurring closing cost, the property taxes are based on the purchase price. A condo in Downtown San Diego will have property taxes of about 1.25%
-Recording Fee: The cost to record the property deed.
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