Buying a house with cash will make you feel like a million bucks. Maybe you came into a large inheritance, or youre justreallygood at saving. Either way, paying the price of the homein full means you wont have to worry about making mortgage payments. Plus, sellers love acash offerbecauseit means they wont have to wait formortgage lenders to approve your funding. High-fives all around!

You will, however, still be responsible for closing costs when paying cash. Dont forget about these expenses youll have to cover, even if you plan on financing the house with cold, hard cash. Heres what to know about closing costs for cash buyers.

How much are closing costs on a cash deal?

The purchase price is the biggest number youll have to face when buying a house, butthere are stillclosing coststhat must be dealt with, says RealtorDenise Shurwith1:1 Realty in San Jose, CA. Sure, you wont have those loan-related fees, but there are a grab bag of others:

• Real estate transfer taxes charged by the county and/or city
• Title insurance fee
• Processing and filing fees for forms being submitted to the County Recorder
• Appraisalfee
• Home inspectionfee

Even if youre buying a home withcash, the one-time closing costs, or fees youll have to pay during the closing process, can be as much as 3% of the purchase price, according toLee Dworshak, a Realtor with Keller Williams LA Harbor Realty.

And even though youve paid for your home in cash and paid all closing costs, that doesnt mean you can get away with living for free in the years to come.

Even though your residence is paid off, there are costs youll incur down the line. Here are some ongoing costs you should be prepared forby keeping some money in the kitty.

Five additional costs cash buyers must be aware of:

1. Property taxes are part of the deal

Yep, they say the only things certain in life are death and you-know-what. And its true! Even if your house is entirely paid off, youll still have to payproperty taxeseach month.

To get an idea of what those bills will look like, check a homeslisting onrealtor.com. Scroll down to the Payment Calculator section, and look on the line that says Property Tax.

To get a more definitive picture,visit your city and county websites to find out the local property tax rates and whether ahike is imminent. You can also check with your real estate agent to get a copy of the current owners tax bill.

2. Homeowners insurance adds up

The cost of yourhomeowners insurance policywill depend on the size and value of your home, your location, your deductible, and your coverage.

Talk to your current insurer about the home and area youll be moving to to get an accurate picture of your new insurance costs. You might need to addflood or earthquake coverageto your policy if those are real threats in your new neighborhood.

3. Buying a house with cash doesnt absolve you of home maintenance

We hate to break it to you, but things break. Thats why savvy homeowners put aside some money each month for unexpected repair ormaintenance needs. Shur recommendsconsidering a home warranty, which costs about $450 a year and provides coverage on a wide variety of elementssuch as plumbing, electrical, heating/air conditioning, and appliances.

4. Homeowners association fees

If youre buying a house with cash in a community with ahomeowners association, you mighthave to budget formonthly or annual HOA fees. These mandatory fees are paid by everyone who owns in the community andgo toward maintaining thecommon areas.

These fees will bebased on the size of your home and the amenities in your community, but for a typical single-family home,HOA fees cancost around $200 to $300 amonth.

5. Utilities are forever

Dont forget to factor in utilities such as electric, gas, water, sewer, and trash. To get a clear picture of what youll be required to pay, ask your real estate agent to askthe sellers what a years worth of bills costs. Utilities can fluctuate from season to season, so this is especially important if youre moving across the country to a new climate.

When you are ready to buy or sell your next home, please call me, Marie McLaughlin 727-858-7569.

Source:https://www.realtor.com/advice/buy/best-of-advice-if-i-pay-cash-for-a-house-what-else-will-i-owe/