The definition of closing costs is that they are the fees and expenses incurred over and above the purchase price of a property when you buy a home in Iowa City. That’s true, albeit somewhat misleading. There are other fees and expenses you’re typically going to run into on the way to closing that don’t show up on the closing statement. They’re not technically closing costs, because they’re not paid at closing. You will be pay them in association with the purchase of the home so you want to know about them up front. These are items that are paid out of closing. (POC).
The good news is that this is a short list. It includes the costs for the inspections, (home inspection, radon inspection and pest inspection). Typically in the Iowa City area you can expect to pay around $300 for a home inspection, $125 for radon and $50 – $60 for a pest inspection.
In addition you will be required to have home insurance on the property from the day of closing and will need to organize that. (Actually, this is a lender requirement so if you’re a cash buyer it won’t be required. It is however highly recommended, for obvious reasons). Even if you haven’t purchased a home in Iowa City before, you probably have a car so you know that the cost of insurance can vary greatly depending on the insurance company. That’s my way of saying that I’m not going to estimate the cost of home insurance, there are just too many variables. That’s also my way of saying this is one item you should definitely shop around. Just to make my point, I do not have my home insurance with the company I have car insurance with. Their quote was $350 (!) higher than the competing offer.
If you have any questions about buying real estate in the Iowa City, just give me a call. Maybe you have a question I can use for a future blog post. I’d love to hear from you in the comments.