Earnest Money Deposit (Optional)
Earnest money is a good-faith deposit submitted with an Offer to Purchase to show the seller you are serious about buying the property.
Earnest money is not required in every transaction.
The amount is negotiated as part of the offer.
If the transaction closes, earnest money is typically credited toward the buyer’s closing costs or purchase price.
Home Inspection & Additional Testing (Optional)
A home inspection allows buyers to better understand the condition of the property before completing the purchase.
A home inspection is not legally required and may be waived by the buyer.
Many buyers choose to complete an inspection to identify potential concerns before moving forward.
The buyer typically pays the inspector directly.
Depending on the property, buyers may also consider additional inspections or testing:
Radon testing
Well inspection and water testing
Septic inspection
Sewer lateral inspection
Pest/termite inspection
Mold testing
Chimney inspection
Structural evaluation
Appraisal Fee (Typically Required for Financing)
When purchasing with a mortgage, the lender will typically order an appraisal to determine the property’s value.
The appraisal is ordered by the mortgage company.
The buyer is generally responsible for the appraisal cost.
Payment is typically due after an accepted offer and is paid out of pocket.
Closing Costs (Negotiable)
Closing costs are expenses associated with finalizing the purchase of a home.
These may include:
Lender fees
Title fees
Recording fees
Prepaid taxes and insurance
Other transaction-related expenses
Closing costs may sometimes be paid by the seller if negotiated and included in the Offer to Purchase.
Moving Expenses
After your offer is accepted and closing approaches, buyers should also consider moving-related costs, such as:
Professional movers
Moving truck rental
Packing supplies
Storage fees
Travel expenses
Utility Transfers & Setup
Some utility providers may require setup fees or deposits when transferring services into your name.
Examples may include:
Electric
Gas
Water/sewer
Internet
Security systems
Final Reminder
Every home purchase is different, and not every expense will apply to every buyer. Your lender and real estate professional can help you understand which costs may apply to your specific situation.