Navigating the process of home inspections in South Dakota can be a daunting task for many homebuyers, especially those who are new to the real estate market. This comprehensive guide is designed to demystify the home inspection process, offering crucial insights and practical advice specifically tailored for those looking to purchase a home in the beautiful state of South Dakota. So whether you’re looking at homes in Sioux Falls or anywhere else in the Mount Rushmore State, here’s Redfin’s guide on what you need to know about South Dakota home inspections.
Why should you get a home inspection in South Dakota?
Investing in a home is a significant financial commitment, making a thorough home inspection in South Dakota a crucial step in the process. A comprehensive inspection can uncover potential issues, ensuring you make the right decision about your purchase. From finding structural issues to assessing the condition of electrical and plumbing systems, a professional inspection provides a holistic view of the property, offering peace of mind and potentially saving you from unexpected expenses down the road.
Are there any specialized inspections that South Dakota buyers should consider?
In South Dakota, buyers may want to consider specialized inspections based on the property’s unique features or location. For homes in flood-prone areas, a flood risk assessment is advisable. Similarly, properties with extensive acreage may benefit from a thorough well and septic system inspection. Mold and radon testing are also prudent in certain regions. Customizing inspections to suit the property’s characteristics ensures a more targeted evaluation, addressing potential issues specific to the South Dakota landscape and climate.
Are home inspections required in South Dakota?
While South Dakota doesn’t legally require home inspections, they are highly recommended and often considered a standard practice in real estate transactions. “Home inspections are not required in South Dakota, but 92% of all homes that are sold are inspected in South Dakota,” says Nick Gromicko, founder of the International Association of Certified Home Inspectors. Opting for an inspection is a proactive choice that serves the buyer’s best interests. It provides valuable information about the property’s condition and can be a negotiating tool in the buying process, allowing buyers to address issues or negotiate repairs before finalizing the deal.
How much does a home inspection cost in South Dakota?
The cost of a home inspection in South Dakota varies based on factors such as the property’s size, age, and additional services requested. On average, expect to invest a few hundred dollars. While the upfront expense may seem significant, it’s a small price to pay for the peace of mind and potential cost savings that come from identifying and fixing issues early on.
Can you sell a house in South Dakota without an inspection?
In South Dakota, sellers are not required to conduct a home inspection before listing their property. However, many sellers opt for pre-listing inspections. This approach allows them to address potential issues beforehand, presenting the property in the best possible light and potentially speeding up the selling process. While not mandatory, a pre-listing inspection can be a strategic move for sellers looking to be transparent and build buyer confidence.
Any other information or advice for South Dakota residents regarding home inspections?
Brad Banks of Black Hills Professional Home Inspections, based in Rapid City, recommends getting an independent home inspection from someone who doesn’t work with your realtor to get an unbiased opinion. “Your inspector should be working for the buyer, not the sale,” he says.
South Dakota home inspection: the bottom line
Regardless of where you choose to live, it’s important to understand the ins and outs of a home before buying. That’s what makes South Dakota home inspections so important. By having the important elements of your potential home looked at by professionals, you can eliminate the guesswork and avoid extra expenses.
Are you considering refinancing your mortgage, but hesitant about the high cost of closing? A no-closing-cost refinance may be the solution for you.
In this article, we’ll explain what a no-closing-cost refinance is, how it works, and the benefits and drawbacks of this type of mortgage refinance. We’ll also go over the qualifications and the process of getting a no-closing-cost refinance, so you can decide if it’s the right choice for you.
What is a no-closing-cost refinance?
In short, it’s a mortgage loan that offers homeowners the option to refinance their mortgage without having to pay initial fees to lenders.
Closing costs usually pay for lender fees as well as loan origination fees, third-party expenditures, appraisal fees, and underwriting and processing costs. Refinance lenders also take on costs that originate from third parties, including escrow and title costs.
With a no-closing-cost refinance, you potentially save money on closing costs, lower your monthly payment, and build equity in your home faster.
It’s certainly tempting and may be the right choice for certain types of borrowers. However, those closing costs saved are costs added to the loan amount that you’ll eventually have to pay back.
How does a no-closing-cost refinance work?
The application process for a no-closing-cost refinance is similar to that of a traditional refinance. You’ll need to provide financial information and documentation to the lender, and they will run a credit check. Once the mortgage lender approves your application, the refinance process can begin.
You may be wondering how the lender makes money on a no-closing-cost refinance. The lender recoups their costs by charging a slightly higher interest rate on the loan. This way, they can potentially make more money in the long run, even though you don’t pay any closing costs up front.
Pros and Cons of No Closing Costs
Having no upfront closing costs comes with a range of both advantages and disadvantages. The idea of skipping the closing costs and fees upfront may be appealing, or even right for you.
However, it’s still important to consider the various ways it may affect your financial situation next month, next year, and next decade. Here are some pros and cons:
Pros
Upfront savings: The most immediate benefit of a no-closing-cost refinance is the elimination of substantial upfront fees. This can be particularly advantageous for homeowners who may not have the liquid assets to cover these costs at the time of refinancing. It allows for the conservation of cash that could be used for other pressing financial needs or opportunities.
Simplified financing: This type of refinance simplifies the financial burden for homeowners. It removes the hurdle of saving for and managing large, one-time closing costs. This is especially helpful for those with limited disposable income or those facing unexpected financial challenges.
Quicker break-even point: For homeowners planning to move or refinance again in the short term, a no-closing-cost refinance can be financially advantageous. By not paying closing costs upfront, they can reach a break-even point more quickly, especially if they sell the home or refinance before the added costs accrue significantly.
Cons
Increased long-term cost: While there’s an immediate saving on closing costs, this type of refinance often results in a higher interest rate or a larger loan balance. Over time, this can lead to significantly higher interest payments. Homeowners should carefully consider the long-term financial implications, such as how the increased loan balance or rate will impact the total interest paid over the life of the no-closing-cost loan.
Higher monthly payments: Due to the higher interest rate associated with a no-closing-cost refinance, homeowners might face higher monthly payments. This increase can strain monthly budgets, especially for those who are already managing tight finances.
Reduced home equity: Rolling closing costs into the loan balance can reduce the amount of equity a homeowner has in their property. This is a critical consideration for those who may need to leverage home equity in the future for other financial goals or emergencies.
How to Qualify for a No-Closing-Cost Refinance
When it comes to qualifying for a no-closing-cost refinance, the eligibility requirements are similar to those of a traditional refinance. Your lender will look at your credit score, income, and debt-to-income ratio to determine if you qualify.
To improve your chances of being approved for a no-closing-cost refinance, and potentially lower your monthly payment, it’s a good idea to make sure your credit score is as high as possible. You should also have a solid income and a low debt-to-income ratio, which lenders assess to determine your ability to manage the monthly payment. Additionally, having a good track record of paying your bills on time can also help.
Once you have determined that you are eligible for a no-closing-cost refinance, you need to compare different options to determine which one will be the most cost-effective for you in the long run. Be sure to consider the interest rate, fees, and overall costs of each option before making a decision.
Finding Lenders Offering No Closing Cost Refinance
When considering a no-closing-cost refinance, finding the right lender is a crucial step. Different lenders offer varying terms and rates, so it’s important to conduct thorough research to find the best option for your financial situation. Here’s a guide on how to find and compare lenders for a no-closing-cost refinance:
Start with your current lender: Your existing mortgage lender is a good starting point. They may offer competitive refinance options to retain your business. Ask about their no-closing-cost refinance options and compare these with what you might find elsewhere.
Research online: Many lenders provide details of their refinance products online. Use mortgage comparison websites to gather information on various lenders’ offerings. These platforms often allow you to compare rates, terms, and fees side by side.
Check with local banks and credit unions: Local financial institutions sometimes offer better terms to members or local residents. Visit or call your local banks and credit unions to inquire about their no-closing-cost refinance options.
Consult mortgage brokers: Mortgage brokers have access to various lending sources and can often find deals that may not be widely advertised. They can help you navigate through different offers and identify the most cost-effective option.
Consider online lenders: Online mortgage lenders can be a viable option as they often have lower overhead costs, potentially translating to better terms or lower rates. However, ensure you research their reputation and customer service record.
Understanding the Details of No-Closing-Cost Refinancing
Before you get excited about not paying anything upfront, sit down with your lender to discuss all the details. Be sure to keep an eye out for the following details:
Some loans are not actually “no cost”
Some loans solely cover lender fees, while others may cover all expenses, including third-party costs
Home loans differ from lender to lender, so it’s important to shop around
Lenders may pay different interest rates and costs on your behalf. Find out all the details before you commit.
Consider all the costs: title and appraisal, lender fees, credit report fees, escrow, home inspections, mortgage points and other third-party fees
Is a no-closing-cost refinance right for you?
Deciding on a no-closing-cost refinance requires weighing your immediate financial needs against the long-term effects on your mortgage. This option is attractive for its low initial fees, but understanding its overall impact is essential. For those planning to move or sell their home shortly, saving on upfront costs can offer immediate financial relief. It’s an appealing choice if staying in your current home isn’t part of your long-term plan.
However, a no-closing-cost refinance usually translates to a higher loan amount or increased interest rate, affecting the total cost over time. If you’re several years into your mortgage, like 10 years into a 30-year loan, the added expense from higher interest rates can surpass the benefits of initial savings.
Before deciding, it’s important to calculate how this choice will affect your monthly payment and compare the overall costs with those of a traditional refinance. Shopping around for the best deal is crucial to align this financial decision with your overall goals.
A Closer Look at No-Closing-Cost Mortgage Deals
Now that you understand the positives and negatives of selecting a no-closing-cost refinance, here’s an example of how these loans may play out in a lending setting:
For example, you may be charged $4,500 in closing costs, the average cost for homeowners today. If you choose to pay this out of pocket, the $4,500 cost will remain static as a one-time charge.
On the other hand, if you skip those fees, that sum will be rolled into your mortgage bills each month over the duration of that loan. Over 30 years at 4.125% interest, the borrower will eventually pay a total of $7,851.
Meanwhile, over the course of five years, the borrower will wind up paying $6,000 after initially skipping the $4,500 closing fee.
Whether this is worth it or not is entirely up to you. If you’re planning to sell your home within the next couple of years, the immediate savings may be worth it for you to pay a bit more over two years.
You can take that saved money to invest in repairs, remodels, realtor fees, and other associated costs that accompany selling a home. Moving a home quickly on and off the market can save you other costs that make this type of loan right for you.
How to Spot a Bad No-Closing-Cost Refinance Deal
No-closing-cost loans are each different from one lender to another. By seeking different opinions and home equity options, you can ensure that you’re getting a good deal. Here are a few warning signs to look out for:
The loan is called “no cost” but it turns out you’ll have to pay for appraisals, title fees, escrow, property taxes, insurance, and prepaid interest.
The loan is called a “no lenders fee loan,” which means the bank will only cover just that—lenders fees, and nothing else.
Carrying out a refinance through a mortgage broker, who then adds on a lender credit, further increases your interest rate.
A bank uses “bundles” that tack on closing costs on top of the cost of the loan. These bundles further increase the size of the loan, as well as the interest rate, leading to a higher monthly payment over time.
Be aware of potential red flags and take your time when considering any type of home loan. This is especially true if the terms of the loan are unclear, and you are feeling pressured to make a decision before fully understanding the details of the loan. It’s always better to be cautious and well-informed before making a commitment.
5 Tips for Negotiating No-Closing-Cost Refinances
Negotiating the terms of your no-closing-cost refinance is crucial in securing a favorable deal. Focus on these effective strategies:
Conduct thorough market research: Understand the current market rates and terms from various lenders. This knowledge positions you as an informed borrower, giving you an edge in negotiations.
Leverage your creditworthiness: If you have a strong credit history, use this as a bargaining chip. Lenders may offer better terms to borrowers who present lower credit risks.
Discuss customization options: Each borrower’s situation is unique. Talk to your lender about tailoring the refinance terms to suit your specific financial needs and goals, especially if you plan to stay in your home for a long time or move soon.
Be prepared to walk away: If the terms offered don’t align with your needs, be ready to explore other options. Showing your willingness to consider other lenders can motivate your current lender to offer better terms.
Review the final offer thoroughly: Ensure that all negotiated terms are clearly included in the final offer. A careful review before agreeing can save you from unexpected terms or conditions.
By applying these strategies, you can effectively negotiate and secure a no-closing-cost refinance that aligns with your financial objectives. Remember, your aim in negotiation is not just to lower costs, but to find a deal that supports your overall financial strategy.
Frequently Asked Questions
What are the average closing costs for a refinance?
The average closing costs for a refinance can vary depending on the location, property type, and loan type. Typically, closing costs for a refinance can range from 2% to 5% of the loan amount.
For example, on a $200,000 loan, the closing costs can be anywhere from $4,000 to $10,000. These costs include the loan origination fee, appraisal fee, title search and insurance, and other miscellaneous fees.
Can you negotiate closing costs on a refinance?
Yes, it is possible to negotiate closing costs on a refinance. While some costs, such as the appraisal fee or title search, are set by third-party providers and cannot be negotiated, other costs such as the origination fee or lender’s title insurance can be negotiated with your lender.
Here are a few strategies to negotiate closing costs on a refinance:
Shop around: Compare offers from multiple lenders and negotiate with them to see if they can lower or waive certain fees.
Timing: Closing costs tend to be lower during slow periods for the housing market.
Ask for a credit: Some lenders may offer a credit towards closing costs in exchange for a slightly higher interest rate.
Be prepared to walk away: If a lender is not willing to negotiate closing costs, it may be best to look for another lender that is more willing to work with you.
When would a no-closing-cost refinance be a bad idea?
A no-closing-cost refinance may not be the best idea in certain situations. Here are a few reasons why a no-closing-cost refinance may not be a good idea:
Short-term ownership: If you don’t plan to keep your home for a long time, you may not be in the house long enough to recoup the costs of the refinance.
Not enough equity: If you don’t have enough equity in your home, you may not be able to qualify for a no-closing-cost refinance.
Higher interest rate: If the interest rate is higher than the rate you already have, it typically does not make sense to refinance.
Limited budget: if you’re tight on budget, and the higher interest rate on the no-closing-cost refinance will put you in a difficult financial situation, then it’s not a good idea.
With home values on the rise, Australians priced out of the markets where they currently live may have to consider a change of scenery if they want to buy.
Home prices are rising to record levels
The latest CoreLogic Home Value Index (HVI) reveals that Australian dwelling values have hit a record high, just narrowly cracking April 2022’s peak by 0.03% on 22 November 2023.
It’s been described as a ‘V-shaped recovery’ by CoreLogic’s executive research director, Tim Lawless, who said it took about 9 months from April 2022 for the index to bottom out in January 2023, and a further 10 months for the new record high to come about last week.
“The ‘V’ shaped recovery may seem counterintuitive, given high interest rates, deeply pessimistic levels of consumer sentiment and high cost of living pressures, however, the recovery can be explained by an imbalance between supply and demand,” Lawless said.
If the shape of the line looks less like a ‘V’ and more like someone forcing themselves to smile, you might be a prospective homeowner who’s watching house prices and interest rates rise with rapidly deflating enthusiasm.
However, this whirlwind recovery is, for the most part, isolated to only five capital cities and four of the states’ regional areas – it’s in the others where there could be an opportunity for those who wouldn’t mind a change of scenery.
The cities and regions where prices are stable or dropping
Capital cities:
Hobart (-1.5%)
Darwin (-0.8%)
ACT/Canberra (+0.5%).
According to CoreLogic, year-on-year (YOY) home values in Hobart (-1.5%) and Darwin (-0.8%) have gone down, with the ACT (Canberra) only experiencing a +0.5% increase in dwelling values, according to CoreLogic.
These three cities are all trending down compared to their record highs, with Hobart posting a -11.8% decrease since its most recent high in March 2022.
Darwin is also down -3.3% since its record high in September 2022 and the ACT (Canberra), despite its slight increase in YOY values, has slipped -6.4% since May 2022.
It’s a similar story in the nation’s regions, although with less pronounced YOY declines.
Regional areas:
Regional Victoria (-2%)
Regional Tasmania (-0.3%)
Regional Northern Territory (-0.4%).
Regional Victoria, Tasmania, and the Northern Territory all experienced small decreases in dwelling values, the largest of which was regional Victoria, with a -2% decline.
Regional Tasmania and the Northern Territory stayed reasonably flat at -0.3% and -0.4% respectively.
These regional areas have all experienced a significant drop in value since their record highs, with regional Victoria showing a drop of -7% since May 2022.
Home values in regional Tasmania have dropped -5.4% since May 2022, while regional Northern Territory values decreased -3.4% since April 2023.
Resident Mozo finance expert, Peter Marshall, recently made the decision to leave Sydney for more affordable interstate shores and shared some practical tips for those considering the move.
As a renter in Sydney for over three decades, Marshall says that buying in Australia’s most expensive housing market was “never on the table as an option.”
“The home price thing was an enormous part of why I left Sydney,” he said. “It’s possible I would’ve stayed, I don’t know. But given the choice between renting in Sydney and buying somewhere else, it becomes much easier.”
Marshall did his due diligence before putting the wheels of his move into motion, helping to make sure there weren’t any surprises on the cost front.
His biggest tip?
“Budget more than you think you need for everything.”
Marshall recommends budgeting for a small amount above every quote that you get, whether it’s for conveyancing fees, or building and pest inspections.
“That means when you get around to having to pay for things, you find that some things end up costing a little bit more, you’ve got room in your budget to deal with that – and it’s not going to be the end of the world.”
Aside from giving yourself some budgetary wriggle room, Marshall also recommends sorting out your conveyancer and inspectors before you lock into making an offer on a home, as once the ball starts rolling, things can move quite quickly.
“You spend months and months looking for a place to buy and, all of a sudden, you need to have all these things at your fingertips. So have those things at your fingertips before you need them because when you do, you won’t be wanting to do that research,” he said.
The same ethos applies to your home loan financing. You’ll want to have a lender on hand, ready to go well before signing the deed, so you know exactly how much money you can borrow to buy your new home.
That also means you’ll need to compare home loan interest rates to see which lenders currently offer competitive rates and the home loan features you want. Get started with some of the featured products below.
*
WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.
**
Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.
^See information about the Mozo Experts Choice Home Loan Awards
Mozo provides general product information. We don’t consider your personal objectives, financial situation or needs and we aren’t recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.
While we pride ourselves on covering a wide range of products, we don’t cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.
Kansas City, MO is the sixth-largest city in the Midwest with over 481,000 people calling it home. Like all big cities, Kansas City has some great amenities like shops, entertainment venues and incredible restaurants.
Kansas City has some perks that not every large city in the U.S. can boast, though. Like the infrastructure — it’s designed to make driving less of a hassle. Raise your hand if you can’t wait to stop spending hours in bumper-to-bumper traffic!
Another perk of living in this city is the low prices. The cost of living in Kansas City, MO is 6.3 percent lower than that U.S. average. That number has dropped in the last year, too, by 2.3 percent.
To find out whether this city is for you, you’ll need to see if it meshes with your budget. Can you really afford the average rent in Kansas City, MO when you add the following factors into the total cost of living?
Housing costs in Kansas City, MO
The biggest expense in your monthly budget is housing costs. Where you live and what you pay for rent will have a direct and sometimes radical impact on the cost of living in Kansas City, MO.
Housing costs in the city are only 1.6 percent lower than the national average. Interestingly, this is a 13.8 percent increase over the cost of housing in 2020. One reason for the increase is that the demand for housing is up but the supply is not meeting that need.
The average rent in Kansas City, MO is $1,540 per month. However, there are neighborhoods throughout the city where you’ll find apartments for much higher (almost $1,000 more) and those for much less. If you look for apartments in the River Market area, you’ll be happy to learn that the average rent in that neighborhood is $2,338. On the other hand, if you look in the River View neighborhood, you’ll find an average rental rate of $720 per month.
Average rent prices in cities near Kansas City, MO
If you’re not sure you want to live directly in this city or aren’t happy with the average rent in Kansas City, MO, another option is to find an apartment for rent in nearby cities. The following cities range from 15 minutes to more than an hour away from Kansas City, so far enough from the hustle and bustle but close enough to still enjoy time spent in the city regularly.
Home prices in Kansas City, MO
You aren’t limited to renting in Kansas City. You might find that purchasing a home is, overall, more affordable for you and your family.
According to Redfin, the average cost of a house in Kansas City is $250,000, an increase of over 11 percent since 2020. As with rentals, the housing market is very competitive with most homes getting multiple offers and selling for 2 to 6 percent higher than the asking price.
Monthly mortgage rates are a little cheaper than the average rent in Kansas City, MO. You’d pay $1,079 per month with a 5 percent down payment or $909 with 20 percent down.
Food costs in Kansas City, MO
Kansas City is one of those awesome cities where you can get big city amenities but you don’t always have to worry about big city prices. Take food costs as an example. On average, they’re 11.4 percent lower than the U.S. average, which is a somewhat significant decrease over last year’s costs (5.7 percent higher).
In fact, if you love to dine out, you’ll be happy to know that there are a lot of amazing restaurants that cater to people on a budget. Like Happy Gillis Café + Hangout, where you can get a delectable dish of biscuits and gravy for $5 or a salad for $4.50. Or, try their Roasted Heirloom Tomato Grilled Cheese, made with farm toast, cheddar, roasted heirloom tomatoes, parsley, garlic, scallions and greens — all for $9.
If you’re in the mood for some fine dining, international cuisine or other specialty eateries, you won’t be disappointed. Kansas City offers Italian, gourmet barbecue, classic fare (think 1950s cocktail party) and much more.
Buying food in Kansas City, MO
If you’re like most people, you’re re-thinking how to maximize your budget since so much is up in the air during the pandemic. Cooking most of your meals at home is one way you can cut food costs significantly.
Let’s take a steak dinner for example. In the U.S., a good steak dinner can cost between $28 and $119, depending on the cut of meat and the restaurant.
If you make a steak dinner for two at home, you can expect to pay:
Steak: $22.06 (for two steaks)
Potatoes: $2.43
Lettuce (for a salad): $1.46
Sweet peas: $0.98
Your total comes to $26.93. The U.S. average for the same meal (cooked at home) comes to $30.66. Not only will cooking at home save you a few bucks (compared to the national average), but you’ll still be able to enjoy an incredible meal without having to leave the comfort of your own home — or paying $119 for the same meal.
Utility costs in Kansas City, MO
Besides food, utility costs take up another large portion of your monthly budget and can increase the cost of living in Kansas City, MO. Depending on whether your landlord covers these costs or not, utility fees can even increase the average rent in Kansas City, MO.
Overall, utility costs here are 3.2 percent lower than the national average. The monthly median energy prices are around $157.44 in this city, whereas the U.S. average is $161.20. One reason for the lower costs is power usage, which might be lower in this city than others because the weather here isn’t quite as extreme in other parts of the country.
Other utility fees to add to your budget include cell phone service (between $10 and $90), water and sewage (average = $109.67 per month), internet (average = $60 per month) and cable ($25 to $65).
If you’re looking to save on utilities (and who isn’t), you might want to look for apartments in Kansas City, MO that offer eco-friendly amenities. The savings can add up over time.
Transportation costs in Kansas City, MO
The best way to get around Kansas City is in a car. The walkability and bike scores (48 and 43, respectively) are relatively low, mainly due to the lack of bike lanes. There are some walkable neighborhoods within the city — Old Westport, South Plaza and Downtown Loop — where you can get some exercise and do a few errands.
The public transit score is lacking as well (37), though there are some options like the Kansas City Regional Transit company (RideKC). The company has a Park and Ride option and multiple buses. Their Transit app helps with planning your ride as it provides real-time information. You can also pay for fares and passes via Freedom On-Demand.
Most residents own their own vehicle since doing so gives them the freedom to come and go according to their schedule, not that of a bus company.
Transportation costs in Kansas City, MO are 11.8 percent lower than the national average. Fuel prices are currently at $2.50 per gallon, compared to $2.76 nationally. The national average for maintenance like tire balancing is around $52.40. The cost in Kansas City is $44.60.
Other transportation costs that can increase the cost of living in Kansas City, MO include parking ($6 to $20 for 2 hours), vehicle registration fees and insurance.
Healthcare costs in Kansas City, MO
Kansas City healthcare costs are an average of 9 percent lower than the U.S. average. For example, a trip to your doctor for your annual check-up will cost around $86.34. Elsewhere in the U.S., the same appointment costs an average of $112.81, though some people pay upwards of $234.
Over-the-counter medications are around 7.08 percent less than the national average, while prescription costs are about the same as the U.S. average (only 0.035 percent difference).
It’s important to note that determining healthcare cost averages is often difficult. What you pay compared to your neighbors is going to vary, sometimes drastically so. The reason for this is not just the insurance company you choose or the plans they offer. Some people will have higher costs because they don’t have insurance. Others because they have chronic health conditions. Finding out how healthcare costs impact the cost of living in Kansas City, MO will take some sleuthing, but it will be worth it to see if living in this city is within budget.
Goods and services costs in Kansas City, MO
Miscellaneous goods and services are, on average, 7 percent cheaper than other cities in the U.S.
It can be hard to figure in all the costs that go into living your life in a big city, but you can get a somewhat accurate estimate by looking at the things you purchase with relative frequency. Things like:
Petcare (vet services, grooming, etc.)
Gym fees and exercise classes (or Peloton membership fees)
Plants, potting soil and anything else you need to create and develop an apartment patio garden
Let’s say you want to take your partner out to a movie. The tickets will cost around $21.42. The national average for a Saturday trip to the movies runs about $22.24 for a couple.
If you’re a fitness buff, the average gym membership in Kansas City is $45 per month. A yoga class will cost you around $15.60, which is $0.60 higher than the national average.
Though it’s not easy to try and calculate everything you spend your money on each month (or quarter or year), it’s important to get a general idea of how much you spend on miscellaneous goods and services. These fees can significantly increase the cost of living in Kansas City, MO, and might even make the average rent in Kansas City, MO out of reach.
Taxes in Kansas City, MO
Another factor to consider in determining the cost of living in Kansas City, MO is the tax rate in that city, as well as county and state taxes.
Kansas City has a 1 percent earnings tax rate. Everyone in the city who earns an income (even if they work outside the city) must pay this tax, which covers the city’s cost for:
Snow removal
Road repair
Trash collection
Police, firefighter, ambulance and paramedic services
Historic preservation
Code inspections
As a resident here, you’ll also pay 8.86 percent sales tax. The state sales tax in Missouri is 4.23 percent. City and county taxes make up the additional 4.63 percent. How does this translate to cash? Let’s say you find a must-buy item with a $1,000 price tag. In addition to paying $1,000, you’ll also pay $88.60 in sales tax.
Finally, if you decide to purchase a home in Kansas City, MO, you’ll have the added responsibility and expense of paying residential property taxes. The Jackson County tax rate is 1.35 percent. If you buy a $250,000 home, you’ll pay a little under $3,400 per year in property taxes.
How much do I need to earn to live in Kansas City, MO?
Whether you can afford the cost of living in Kansas City, MO depends on what you earn. On average, residents of Kansas City earn $54,194 annually. This is slightly higher than the national average of $51,916.
If you earn the average annual income, can you afford the average rent in Kansas City, MO? Rent in this city is approximately $1,540 per month or $18,480 per year. This is nearly $3,000 more than the oft-recommended 30 percent rental budget.
Though the price is higher, it doesn’t mean you can’t afford to live in Kansas City, MO. If you’re comfortable cutting costs in other areas (walking and biking as much as possible to save on fuel or eating out less frequently), you can afford the cost of rent in this city. Also, remember that there are several neighborhoods in Kansas City and suburbs around it that offer great rentals for lower prices.
If you’re curious whether you can afford to live in this city, be sure to check out our free rent calculator.
Understanding the cost of living in Kansas City, MO
There’s no flat rate when it comes to the cost of living in Kansas City, MO. As nice as that would be (talk about easy calculations!), we all have varying needs. And those needs result in different housing, food, tax and healthcare costs.
That said, for many people, the cost of living and the average rent in Kansas City, MO is quite affordable. Much more so than many large cities across the country.
If you’re one of those people who want to take the plunge and move to this fair city, make sure to check out our rental listings to find apartments for rent in Kansas City, MO that fit your budget.
Cost of living information comes from The Council for Community and Economic Research.
Rent prices are based on a rolling weighted average from Apartment Guide and Rent.‘s multifamily rental property inventory of two-bedroom apartments as of August 2021. Our team uses a weighted average formula that more accurately represents price availability for each individual unit type and reduces the influence of seasonality on rent prices in specific markets.
The rent information included in this article is used for illustrative purposes only. The data contained herein do not constitute financial advice or a pricing guarantee for any apartment.
After Rich Engels’ mother died earlier this year, Engels decided to sell her condo unit in Sunrise Lakes Phase 4.
He lined up a buyer, but he said the deal fell apart after the lender learned that the condo building had no wind insurance.
Lenders won’t approve mortgage loans on buildings that are not insured with full replacement coverage.
It’s a growing problem as South Florida condominiums face a perfect storm of rapidly increasing insurance costs, tougher requirements to maintain reserves to cover repairs, and heightened scrutiny of inspections by lenders who rely on Fannie Mae and Freddie Mac, the federally-created guarantors of most U.S. home loans.
Engels eventually sold the condo to a buyer who could pay cash. But he says he settled for $40,000 less than what he was offered by the customer seeking the mortgage loan.
Rich Engels says he lost thousands of dollars when he was forced to sell his mom’s condo unit to a cash buyer. The first buyer was forced to pull out because lenders won’t write mortgages on units without windstorm insurance, which the complex lost because too many roofs are overdue for replacement. (Ron Hurtibise/South Florida Sun Sentinel).
“We were planning to put some of the money away for each of the grandkids and give some to our kids,” Engels said. “I had to break my promise. It hurt a lot.”
an analysis of the new guidelines by the Massachusetts law firm Moriarty Bielan & Malloy LLC.
A list of ineligible properties are available to lenders and real estate agents, but they are not allowed to share it publicly.
“Prior to September, the mortgage companies would ask about the condition of the building and a general response was good enough,” says Ryan Papy, president of Keyes Insurance, an affiliate of Capital Partners Mortgage Services. “Now they want the full inspection and they go through it item by item. A large population of condos in our area do not pass this test and will only be suitable for cash buyers.”
Property managers and associations are still becoming familiar with the process, he said, adding, “Right now, it is chaotic to say the least.”
Reserve study requirement adds pressure on associations
And it comes as associations are figuring out how to comply with new legal requirements for condo buildings three stories or taller to complete Structural Integrity Reserve Studies no later than Dec. 31, 2024.
The study, currently required only in Miami-Dade and Broward counties, must include evaluations of specific structural elements, including the roof, load-bearing walls, foundation, floor, plumbing, waterproofing and fireproofing, windows, electrical systems, and any other item with a repair or replacement cost of more than $10,000 that would negatively affect the structure of a building if not corrected.
The studies will have to identify the remaining useful life of the common areas being inspected and recommend annual reserves that associations must raise to repair or replace the elements.
Effective Dec. 31, 2024, associations will no longer be permitted to waive or reduce funding for the reserve items in their annual budgets, or use reserve funds earmarked for the required structural items for any other purpose.
The studies will reveal more roofs that have reached the ends of their useful lives, along with other damage requiring immediate repairs to keep buildings insurable.
The costs associated with the required studies, along with costs to make required repairs and the rising cost of insurance threaten to make Florida condo life unaffordable for a growing number of retirees, Abramowitz said.
“Obviously something has got to give at some point,” he said.
Ron Hurtibise covers business and consumer issues for the South Florida Sun Sentinel. He can be reached by phone at 954-356-4071, on Twitter @ronhurtibise or by email at [email protected].
Embarking on the journey of purchasing a home in the Badger State is an adventure filled with anticipation and, often, a measure of uncertainty. Central to this process is the pivotal step of a Wisconsin home inspection—an essential safeguard that delves beneath the property’s surface, ensuring that your future haven is as sound in structure as it is inviting in appearance. This Redfin article will explore the ins and outs of Wisconsin home inspections, covering everything from their importance to specialized inspections, requirements, and costs. So whether you’re buying a home in Madison or a home in Green Bay, keep reading to learn everything you need to know about getting a home inspection in Wisconsin.
Why should you get a home inspection in Wisconsin?
Buying a home is a big investment, and getting a home inspection is a crucial step in protecting that investment. A professional home inspector will thoroughly assess the property, identifying any hidden issues, structural concerns, electrical and plumbing problems, and other potential red flags that may be missed during a casual walkthrough. This complete examination provides you with valuable insights, negotiation leverage, and peace of mind, ensuring you make an informed and confident decision about your new home.
“In Wisconsin, a home inspection is a smart step for buyers and sellers alike,” says Patrik Neuwirth of Inspect Karma, a Milwaukee-based home inspector. “It serves as a critical safeguard, uncovering potential issues from seasonal wear due to the state’s harsh winters and humid summers, to more hidden and costly problems. An inspection provides transparency and confidence, ensuring that one of life’s biggest investments is sound and secure.”
Are there any specialized inspections that Wisconsin buyers should consider?
While a standard home inspection covers the fundamentals, Wisconsin buyers should be aware of specialized inspections tailored to specific concerns. These include radon testing, especially in areas with elevated radon levels, mold inspections for properties prone to mold growth, lead paint assessments in older homes, and well and septic inspections in rural areas with these systems. These specialized inspections are key for ensuring your home is safe and free from potential hazards.
1st Choice Inspection in Milwaukee emphasizes the importance of sewer drain scoping, especially for houses built before the 1970s because tree roots can cause issues.
Are home inspections required in Wisconsin?
In Wisconsin, home inspections are not mandatory, but they come highly recommended for all homebuyers. While not required by law, certain lenders may impose inspection requirements as part of the mortgage approval process, such as pest inspections or appraisals. It’s important to note that despite the lack of mandatory inspections, opting for a home inspection is a wise and cost-effective choice.
Donn Anderson of Anderson Home Inspections advises that although inspections aren’t required in the state, they are more than worth the cost. It’s not uncommon for homebuyers to incur thousands of dollars in surprise expenses because they decided against getting a home inspection.
How much does a home inspection cost in Wisconsin?
The cost of a home inspection in Wisconsin can vary based on several factors, including the property’s size, age, location, and the scope of the inspection. On average, you can expect to pay between $300 and $500, with specialized inspections incurring additional expenses. While it may seem like just another added cost, the investment is well worth the peace of mind and potential long-term savings it provides.
Can you sell a house in Wisconsin without an inspection?
Wisconsin does not require sellers to conduct a pre-listing inspection, but many opt for this proactive approach. A pre-listing inspection can help find and address issues upfront, making the selling process smoother and more attractive to potential buyers. While not mandatory, it’s a strategic move for sellers looking to increase their home’s market appeal.
Wisconsin home inspection: the bottom line
In the world of real estate, knowledge is power. A home inspection in Wisconsin is your key to making an informed decision when purchasing a property. It provides you with insights into the home’s condition, negotiation power, and peace of mind, ensuring that you are investing in a safe and sound property. Regardless of where in the state you’re looking to move, a home inspection is a wise investment in your future.
Many people consider homeownership a rite of passage, a part of the American Dream, and a key way to build wealth. But recently, as home prices and mortgage interest rates have risen, some may wonder, “Is buying a home a good investment, no matter what?”
It can be challenging to gather enough funds for a down payment, qualify for a mortgage, and then afford all of the costs that go along with homeownership, such as property taxes, maintenance expenditures, and utilities. But to live in a place you love while building equity can be a win-win.
So if you’re wondering “Is buying a house a good investment?” vs. say, investing your money, you’ll have to take a closer look at how homeownership relates to your personal financial situation. Read on to learn how to evaluate what will be the right decision for you, starting with important questions to contemplate.
Is It a Good Investment to Buy a House?
In order to determine if buying a home is a good investment for you, you’ll need to estimate the amount of time you plan to own the house and the real estate marketplace dynamics.
• If you don’t plan to own the house for at least five years, you may not break even when you sell the home. When you buy a home, you pay for more than just the house and those costs can add up. You’re often paying for appraisals, mortgage application fees, inspections, movers, real estate agent fees, and that can add up to thousands of dollars.
In order to recoup all those fees, conventional wisdom says you need to wait at least five years for your home to appreciate before selling it. If you plan to live somewhere for less than five years, it could make the most financial sense just to rent property.
• You may also want to consider other aspects of whether it’s a good time to buy a house. For example, is it a hot or cool market? Are you likely to wind up in a bidding war (and possibly overpay) because there isn’t enough supply to meet demand? Are interest rates likely to fall over the next year? These dynamics can impact whether now is the right time to jump into the housing market.
💡 Quick Tip: With SoFi, it takes just minutes to view your rate for a home loan online.
Do You Have Sufficient Savings to Buy a House?
In order to buy a home, you’ll generally have to take out a mortgage to finance your home purchase. Before that’s not the only expense. These costs must also be covered:
• Before you even get to the mortgage stage, you’ll have to save for a down payment (which is often anywhere between 3% and 20% of the property’s purchase price) and closing costs, which are typically 3% to 6% of the loan amount. This can mean a significant chunk of change.
• There are continuing costs you’ll have to account for, such as home insurance, property taxes, general maintenance, and emergency home repairs.
When you are renting, if the kitchen sink springs a leak, your landlord will take care of it. But when you own a home, those repairs will be entirely your responsibility. Having an emergency fund saved up will help you deal with unexpected costs associated with homeownership.
Also, if you are purchasing a house as an investment vs. using it as a primary residence, can you afford to buy a house while still renting? That is a situation in which you will want to map out your cash flow and make sure you are prepared if you can’t flip or rent the property as quickly as anticipated. An emergency fund could also be invaluable in that scenario.
Are You Confident in the Housing Market?
The housing market rises and falls; take a close look to evaluate current trends. Home prices skyrocketed during the Covid pandemic and have continued to rise recently. This can make it difficult for first-time homebuyers to find a suitable home that is in their price range. It’s important to be prepared as you start to look at homes. Understand your budget and make sure you have saved enough money to make a down payment on the property.
Also be sure that you understand how mortgage rates can impact the affordability of housing and what your home shopping budget looks like. 💡 Quick Tip: If you refinance your mortgage and shorten your loan term, you could save a substantial amount in interest over the lifetime of the loan.
Are You Ready for the Responsibility?
When you own your own home, you have a lot of freedom to make the space completely your own. With all of this flexibility comes a lot of responsibility. If the house has a yard, you’ll be responsible for regular maintenance and upkeep.
Will you need to pay for a new roof soon? Buy a lawn mower? If you live in an area with harsh winters, will you need to get a snow blower or hire someone to clear the driveway after each snow storm? These costs can add up.
So make sure you are ready for the financial responsibility that comes with owning a home before you make the purchase. You’ll have to account for repairs, improvements, general upkeep, insurance, and taxes. Not only does all of this cost money, it will take your time and attention as well, which isn’t necessarily the case when you rent. If you’re not ready to always be “on call” for your property’s needs, it could be a homebuying mistake to purchase.
Recommended: Should I Sell My House?
Are You Willing to Live with a Long-Term Loan?
Buying a home can mean you’re taking on a loan for perhaps 15 or 30 years. That’s a major undertaking. Part of the process of learning how to buy a house is educating yourself on how mortgages work and the different types available. Generally, there are two types: fixed rate and adjustable-rate mortgages.
• A fixed-rate mortgage keeps your payment level over time, typically 15 or 30 years, because the interest rate remains stable.
• The interest rate on an adjustable-rate mortgage loan fluctuates over time. They usually start out lower than a fixed-rate loan but often rise in later years.
To see what a mortgage could mean for your finances, take a look at an online mortgage calculator to compare different types of loans and see what your costs might look like. If a loan could be part of your life for three decades, you want to make sure you’re comfortable with it.
Remember that while it may seem daunting to take on a 30-year obligation, a mortgage helps you build equity in an asset that generally increases in value as time passes. Is a house a good investment? Historically, yes, if you take the long view.
Over the years, homeowners build up equity in the house as they methodically pay off more and more principal with less monthly payments on each loan payment. Many smart borrowers pay extra each month toward the principal to pay off the mortgage sooner.
Recommended: Quiz: Should You Buy or Rent a Home?
Pros and Cons of Buying a Home as an Investment
Before a major financial move, it’s important to consider the benefits and downsides. You’ll want to know what are the pros and cons of buying a starter home or a subsequent property. Consider these points.
Pros of Buying a House
Here are some of the upsides of buying and owning a home:
• You will build equity in your home over time, which can help you grow your wealth. Your home value may appreciate as well.
• There may be tax advantages to homeownership, such as deducting mortgage interest.
• Paying your mortgage payments on time can help build your credit.
• You can renovate the property as you see fit, unlike the case with rental units.
• You likely have a good idea of your monthly housing costs for the long term. If you are renting, you could face significant fluctuations.
• There’s a feeling of security for many people when they know they own their home.
Cons of Buying a House
Next, it’s wise to consider the disadvantages of buying a home:
• You typically need to pay for the down payment and closing costs, which can be a significant financial hurdle.
• You are likely locking into long-term debt, and it can take a while to build equity.
• There is no guarantee that your home’s value will grow over time.
• The costs related to owning a home can be significant. This includes expenses like property taxes and insurance, as well as home repairs.
• You will have less flexibility if you need to move for a job, say, or want to relocate to be closer to friends and family. Selling a house can involve time, energy, and money.
Ready to Buy? Consider a SoFi Mortgage
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% – 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It’s online, with access to one-on-one help.
SoFi Mortgages: simple, smart, and so affordable.
FAQ
Is it wise to buy a house as an investment?
Whether it’s wise to buy a house as an investment will depend on many factors, such as your personal finances and current economic and real estate trends, as well as whether the property is a place that’s a good home for you to live in for at least several years.
Is buying a house worth it in 2023?
Buying a house in 2023 can be challenging because home prices and mortgage rates have been rising. However, if you can afford the monthly mortgage payments, plus the down payment and ongoing costs of homeownership, it may still be the right move for you.
Is owning a home an asset?
In general, a home is considered an asset. Yes, you typically have a mortgage, which is a liability, but on the plus side, you are building equity while having a place you enjoy living.
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
SoFi Loan Products SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
SoFi Mortgages Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility for more information.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Do you want to learn how to make money with a drone? Drones have become more and more popular recently. People use them not just for fun but also for jobs that need pictures and videos from up high. This means there’s a growing opportunity for people to start small businesses to make money with…
Do you want to learn how to make money with a drone?
Drones have become more and more popular recently. People use them not just for fun but also for jobs that need pictures and videos from up high. This means there’s a growing opportunity for people to start small businesses to make money with their drones.
I have had a drone for several years now, and it is so great to be able to take pictures from a different perspective with it. We’ve also used our drone for many purposes – such as inspecting a roof, looking at the top of our mast on our boat (at 68 feet tall, it’s nice to have a drone to check things!), for family pictures, and more.
Whether you fly drones for fun or as a pro, earning money with them can be straightforward. If you have the right knowledge and tools, you can make your hobby pay off and make income.
Below, I will be talking about how to make money with a drone, how to get started, the best drone to make money with, and more.
How To Make Money With A Drone
What is a drone?
A drone, also called an unmanned aerial vehicle (UAV), is a flying machine operated from a distance by a pilot (like you or me) with a remote control (such as your cell phone). Whereas before, helicopters were needed for pictures from high up in the air, drones have made it much easier for the average person to take photos and videos.
Drones are used for many things, like taking amazing pictures from the sky, delivering packages, and inspecting the top of buildings that are high off the ground.
Some popular drone brands like DJI have really good cameras and special features that make them easy to use too.
How much money can you make flying drones?
How much you can earn as a drone pilot depends on how much experience you have, what kind of services you sell, and how much demand there is for those services where you live.
According to Glassdoor, a drone pilot can make around $65,000 a year, with some making well over $100,000 each year.
Recommended reading: 18 Ways You Can Get Paid To Take Pictures
13 Ways To Make Money With A Drone
Below are 13 ways to make money with a drone. Whether you want to learn how to make money with drone videos or drone pictures, there are many ideas that you could try.
1. Stock photos
One great way to get started making money with your drone is by selling your drone photos on stock photo sites.
You can make passive income with a drone by taking aerial photos (such as of cities, the outdoors, and so much more) and selling them on stock photo websites such as Shutterstock, Getty Images, and DepositPhotos.
Customers buy stock photos for many different uses, such as on websites, in TV shows, in books, on social media, and in other places.
I buy stock photos all the time for my website and so do millions of other people. They are so nice and helpful to have!
You simply take drone photos, upload them onto a stock photo website (making sure to add relevant keywords), and then the stock photo site does the rest of the work to sell them to customers.
2. Real estate photos
As a drone pilot, you can sell real estate photography services to real estate agents which helps them show the properties that they are trying to sell.
By taking a picture of the property from different angles and heights, real estate agents can show a different view of the real estate that traditional photography can’t provide.
By selling property photography services with your drone, you’re selling a helpful service to real estate companies looking to stand out in a competitive housing market.
More and more homes are being sold with drone photos, and it makes sense – it can really show how great the surrounding area is around a home! Plus, a possible home buyer can see the whole home and property with a drone picture to get a better idea of what the home includes.
3. Building inspection services
Building and roof inspection services are always in high demand, as homeowners and building owners need to look for possible damages or maintenance issues.
Drone operators can inspect roofs and tall buildings safely and quickly with a drone. I personally know a few roof and building inspectors who regularly use drones to help them with their work. Instead of spending a ton of time climbing onto a roof (or going on one that may be dangerous to begin with), they can simply turn on their drone and take pictures in order to get a better idea of what is going on.
After all, drones can go where humans can’t, or at least where it’s risky, time-consuming, or expensive for humans to go.
This is what makes a drone so helpful when it comes to inspecting a building. Drones are so easy to use, and they can take a picture of a hard-to-reach location in just minutes.
Drones are used by others for inspection purposes as well, such as to inspect solar panels by solar installation companies, inspect bridges and wind turbines, as well as inspecting farmlands. A service related to this is that many times utility companies will use drones to inspect their power lines too!
4. Aerial photography and videography
Aerial photography and videography are popular for many different events, such as sports and concerts.
Sporting events and concerts typically pay for drone photos because it helps give them more images of the full picture of the event they are hosting as well as a different perspective. This can help them to sell more tickets in the future and gain more publicity.
5. Instagram
I follow quite a few Instagram accounts that mainly post amazing drone photos from around the world. These content creators are able to make money by building a following and partnering with companies for advertising.
6. YouTube videos
Starting a YouTube channel that shares your drone footage can also earn you income. As you gain subscribers and views, you can earn advertising income and sponsorship deals or paid collaborations.
On your YouTube channel, you may publish videos that include drone videos such as from your travels. Or, you may be teaching others how to use their drone. There are many different avenues you could try.
Recommended reading: How Much Do Twitch Streamers Make?
7. Aerial mapping and surveying
Drones can be used for mapping and surveying tasks, such as creating topographic maps, assessing land for development, and for agricultural inspections.
This is because with a drone you can map out large areas extremely quickly.
I did a quick Google search for the job “aerial mapping drone pilot” and found a lot of different openings too!
8. Drone delivery services
Drone delivery services are a pretty new market, with companies such as Amazon starting to use drones for package delivery.
Sounds pretty crazy, but it is a real thing!
While regulations are still constantly changing, drone delivery services may have some big openings for drone pilots who want to be some of the first.
9. Filmmaking
Drones have completely changed the filmmaking industry by allowing for unique camera angles and movements that were once impossible to achieve (or could only be done before with a helicopter).
Drone pilots can sell services in filmmaking and work on movie sets, TV commercials, and music videos.
10. Hotel photos and ads
Drone photos of hotels and Airbnbs can help to sell more rooms better because customers can see the surrounding area and what the whole building looks like.
This may help a person to see that there is a beach or a mountain nearby, or perhaps that it is close to the center of a city.
11. Wedding photography
More and more couples are wanting drone photography of their wedding. You can sell wedding photography services with your drone, which allows couples to capture their wedding day from different angles.
This could be an add-on if you are already a wedding photographer, or perhaps you can reach out to wedding photographers in your area and sell your services to them as an add-on.
12. Freelance jobs
Drone photographers can use freelance platforms such as Upwork, Fiverr, Droners.io, and PrecisionHawk to sell drone services to clients. By promoting your drone photography portfolio on these sites through creating a profile, you can find freelance jobs and make money.
I did a quick search and you can see examples of drone photographers selling their services on Upwork here to get an idea.
13. Renting drones
If you own multiple drones, you can possibly start renting them out to other drone pilots or people who simply want to take some drone photos.
There are many ways you can rent out your drone, such as to recreational users who want to try out flying a drone, content creators, photographers, researchers, for search and rescue operations, disaster relief, and so many more.
Getting Started With A Drone Business
Starting a drone business can be a great way to make money, especially if you enjoy playing around with drones.
As you read above, drones have been so helpful in many different areas, from real estate to movies, farming, and more.
Starting a drone business is probably simpler than you would think too.
What drone should you buy?
If you want to learn how to make money with a drone, then getting the right drone is helpful. Before buying a drone, think about your budget, the drone’s flight time (how long the drone can fly in the air on a battery charge), your skill level, and the type of services you want to sell.
Some of the best drones to make money with include:
Do you need a license for a drone business?
Yes, if you plan to operate a drone for commercial purposes, you should have a Remote Pilot Certificate from the Federal Aviation Administration (FAA). To get this certificate, you must:
Be at least 16 years old
Be able to read, speak, write, and understand English
Pass an aeronautical knowledge test
Be physically and mentally fit to operate a drone
Complete the FAA’s online application
Once you get your Remote Pilot Certificate, you are required to register your drone with the FAA and you will then get a unique identification number.
You can learn more about how to become a drone pilot on the FAA’s website here.
Do you need insurance to run a drone business?
Having insurance isn’t required by the law, but it’s a good idea to get it for your drone business.
Insurance helps protect you and your clients in case something goes wrong, such as if there is an accident or problems with the drone. Drones can be expensive, so insuring them can help to pay for them in case something happens (for example, you could crash them into a building or lose them in the water).
I have personally lost a drone in the water, and insurance gave me a new one right away, which was very nice.
How much does it cost to start a drone business?
The costs for starting a drone business include:
Drone – $300 to $10,000+
Laptop to edit your photos – $500 to $2,000+
Remote pilot certificate – $175
Drone insurance – $1,000 per year
Other expenses that you may have include a business license, advertising costs, office space, and more.
The amount that you spend to start your drone business will be higher or lower depending on your budget, what kind of drone business you plan on running, and more.
How To Improve Your Drone Skills And Training
Below is how you can become a better drone pilot and get good pictures and videos. Whether you’re a beginner or if you’ve been flying drones for years, the below can help you to improve your business.
Become a skilled pilot
To get really good at flying drones, you need to spend time learning and practicing. Flying a drone is not as simple as it looks – I know because I have had a drone for years, and I have a lot to learn yet. And, I still get nervous when flying it!
If you want to start a drone business, then I recommend taking a drone training course that will teach you everything from basics to advanced skills. There are a lot of features on a drone and it can be overwhelming to learn. A course can speed things up for you.
Also, practicing as much as you can is very helpful, which will help you get better at controlling it. Finding an open space can help you get more comfortable with flying it as well because you won’t be as worried about hitting something with your drone.
This will then help you with the next step – taking photos and videos with your drone.
Video and photography training
Once you’ve learned how to use your drone, the next step is to get better and better at taking pictures and videos with your drone.
You will want to learn as much as you can about your drone’s camera and the different settings that come with it. You should learn how to set up good shots, how to figure out what kind of lighting you need, how to frame pictures and videos, and more.
Here are some tips to improve your video and photography skills with your drone:
Take a course – Sign up for a photography or videography course to improve your knowledge of drone camera settings as well as framing and editing techniques. You can easily find a drone photography course online, such as on Udemy.
Practice regularly – The more you take videos and photographs with your drone, the better you will be.
Learn from others – I recommend joining online forums or drone pilot Facebook groups to talk with other drone photographers. This can help you to learn new tips that you may not have thought of.
If you get better at flying and taking good pictures or videos with your drone, you can start earning money. Of course, it will take time and lots of practice, though!
Frequently Asked Questions About How To Make Money With A Drone
Below are answers to common questions about how to make money with a drone.
Can I sell my drone photos?
Yes, you can sell your drone photos either part-time or even full-time. Many drone photographers earn money by selling their drone photos to people such as real estate agents, advertising companies, and more.
Are drone pilots in demand?
Drone pilots are in demand as drone technology has become easier to use and more affordable. Industries such as agriculture, construction, marketing, and even emergency response use drones for many different purposes.
Can you make good money with a drone? Is a drone business profitable?
Yes, you can make good money with a drone! You can make up to $200 an hour, and the average pay is around $65,000 per year. Profitability depends on factors such as your target customer and the services you sell.
What are the best drone pilot jobs for earning money?
Some of the best drone pilot jobs for making money include aerial footage, real estate photography, mapping and surveying, building inspection, and selling drone photos as a content creator (such as Instagram).
What freelance opportunities are available for drone pilots?
Some freelance jobs for drone pilots include aerial photography, land surveying, and inspecting buildings. You can sell your services through your website, social media, and online job marketplaces such as Upwork, Zeitview (formally known as DroneBase), and FlyGuys.
Is obtaining a Part 107 drone license necessary to earn with a drone? Can you make money with a drone without a license?
If you want to use your drone for a job in the United States, you’ll need a Part 107 license (this is informally known as the commercial drone license). It shows you know how to use your drone safely and follow the rules. Plus, some clients might ask you to have this license before they hire you too. If you are caught selling drone photography without a license, then you could face a fine of $1,100 from the FAA.
What DJI drones are recommended for making money?
Some DJI drones to look into include DJI Air 2S, DJI Mavic 3 Pro, and the DJI Mini 3.
What are the opportunities in drone training and consultation?
As more people use drones, there will be more need for drone training and advice. If you know a lot about drones, you can teach others or help businesses use drones in their work. This can be a good way to make money as well.
How To Make Money With A Drone – Summary
I hope you enjoyed this article on how to make money with a drone.
As you can see, there are many different ways to make money with a drone, such as:
Stock photos
Real estate photos
Building inspection services
Aerial photography
Instagram content
YouTube videos
Aerial mapping and surveying
Drone delivery services
Filmmaking
Hotel photos and ads
Wedding photography
Freelance jobs
Renting drones
Do you want to learn how to make money with a drone?
The cost to replace a chimney ranges from $1,000 to $15,000, depending on the type and size of the chimney. You can install a smaller or prefabricated chimney for $1,000 to $5,000, but a full masonry chimney replacement cost can reach $15,000.
Below, we’ll explain new chimney cost factors, break down labor and materials expenses, discuss financing options, and help you determine if you might be able to replace the chimney yourself.
Chimney Replacement Costs: An Overview
How much does a chimney replacement cost? Anywhere from $1,000 to $15,000. A full chimney replacement is on the higher end of that range while a partial replacement — or a basic prefab chimney installation — is on the lower end.
In some cases, it might be possible to repair the chimney instead of replacing it. Chimney repair costs typically range between $1,000 and $3,000, though it varies depending on the extent of the damage.
Recommended: The Ultimate Home Maintenance Checklist
Full Chimney Replacement
A full chimney replacement costs between $5,000 and $10,000 — or up to $15,000 in some cases. Prefabricated chimneys are the lowest-cost option. You’ll pay moderate prices for a metal chimney and the highest prices for a brick chimney.
Partial Chimney Replacement (Rebuild)
You may only need to replace part of a chimney, like the stack, which extends above the roof. In other cases, you may need to pay for the repair of specific elements, like collapsing mortar, a damaged chimney crown, or a cracked flue.
Partial chimney replacement costs may top out at $5,000 while repair typically ranges between $1,000 and $3,000 per job.
Recommended: Home Improvement Calculator
Chimney Installation Labor Cost
Labor makes up a large portion of the cost to replace a chimney. Depending on your geographic location, if you can reach the chimney by ladder or you need scaffolding, and the type of chimney being installed, labor rates may range from $50 to $150 an hour for an experienced mason.
You will usually need to hire a structural engineer before the mason can begin their work, which adds to your overall labor costs. Depending on where you live, that can cost around $500.
Chimney Installation Material Costs
Material costs vary depending on the type of chimney being replaced, rebuilt, or repaired. Prefab chimneys have lower material costs while masonry chimneys require more expensive materials like bricks and mortar.
Chimney Installation Cost Financing
Paying for a new chimney — or even a more basic chimney repair — can be difficult on a tight budget. If you don’t have the money in emergency savings, you can explore other options like:
• A payment plan with the contractor: Ask the contractor if they can set you up with a payment plan over a set number of months, rather than requiring the full payment all at once. Costs may be higher if you go this route.
• A credit card: Some contractors will let you pay with a credit card but be careful. Your credit card may have a high APR, and if you can’t afford to pay the full bill at the end of the month, you could end up paying a lot of interest, which will make the new chimney even more expensive.
• A home improvement loan: Home improvement loans are a low-cost option for homeowners. These personal loans typically have a lower interest rate than your credit card, and you can choose repayment terms — often three to five years — that make sense for your budget. A personal loan can be a cost-effective way to pay for common home repair costs.
• Home equity loans: Homeowners can also tap into their home equity with a home equity loan or home equity line of credit (HELOC).
Before you decide on the best financing option, you will want to compare the difference between home equity loans vs. home improvement loans.
Can I Replace the Chimney Myself?
A chimney replacement requires special skills and training. A lot can go wrong if you install or repair a chimney incorrectly. It could become a fire hazard or potentially collapse. No matter your DIY skills, we highly recommend hiring a qualified mason to tackle all repairs and replacements.
Recommended: How to Keep Inflation From Blowing Your Home Reno Budget
What Factors Impact a Chimney Replacement Price?
Several factors can impact your overall chimney replacement cost, including:
• Permits needed: You’ll almost always need to get a permit for larger chimney replacement projects. Permit costs vary depending on your state and municipality.
• Level of work required: Wholesale chimney replacements cost significantly more than minor work. For example, chimneys may just require some repointing or tuckpointing to keep them in good shape, or you may need to replace the crown or cap or only rebuild the stack. If you have to replace the whole chimney, it may require demolition, which can be expensive. Talk with your contractor about the extent of the work to get a better idea of the total chimney installation cost.
• Type of chimney: Prefab chimneys are the most affordable to install. You’ll spend more to replace a metal chimney, but the most expensive type of chimney to replace is a brick one.
• Size and location: Larger chimneys will cost more to replace than small ones. Chimneys that are easy to access (by ladder, for example) are also more affordable to repair or replace. If the positioning of the chimney makes it harder for the contractor to access, labor costs will be higher.
Signs Your Chimney Needs to Be Replaced
How do you know when it’s time to replace your chimney? Here are a few signs to watch for:
1. Crumbling brick: If the brick is visibly crumbling or deteriorating, call a mason quickly to determine the extent of the damage and begin the repair or replacement work.
2. Leaks: If your chimney is the source of leaks (look for water damage to the surrounding walls and ceiling), it’s time to call a contractor to look at it.
3. Cracks: It’s good practice to have your chimney inspected each year. During the inspection, the contractor will look for large cracks. These could be a sign that it’s time to repair or replace the chimney.
The Takeaway
Chimney replacement costs can range from $1,000 to $15,000 — it’s not a cheap project, but luckily, it’s also not a common one. Get your chimney inspected every year, and keep up with regular maintenance and cleaning. Unless there’s unexpected storm damage or the chimney is old, you may not have to replace the chimney the entire time you live in your home.
Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. Checking your rate takes just a minute.
Replace your chimney asap with a home improvement loan from SoFi.
FAQ
How long does it take to replace a chimney?
Basic chimney repairs can be quick: A professional should be able to repair a partially damaged chimney in one to four days. Significant damage may lead to longer timelines — in some cases, it might take weeks or even months to repair and rebuild a chimney.
Can I replace my chimney myself, or do I need to hire a professional?
Replacing and repairing a chimney requires specialized knowledge, skills, and equipment, not to mention physical strength. If you make even a small mistake when replacing your chimney, you might accidentally cause a leak, inadvertently create a fire hazard, or build a structurally unsound chimney that could collapse. Always hire a professional for this work.
What qualifications should I look for in a chimney replacement contractor?
When looking for a contractor to work on your chimney, always confirm that they are licensed and insured. You should also verify that they’re certified by the Chimney Safety Institute of America.
Ask the contractors if they offer warranties or guarantees for their work and read reviews online to make sure they provide quality services. You can also ask them for references.
How do I compare quotes from different chimney replacement contractors?
Before getting quotes from any chimney replacement contractors, read online reviews and ask the contractors about their licenses, insurance, and certifications. Only get quotes from qualified contractors.
When comparing quotes, look not just at the overall cost but also the timeline to ensure they can replace your chimney quickly, if needed. Also verify what is and isn’t covered in the quote. For example, has the contractor included the necessary permits, or is that a separate cost not part of the estimate?
You’ll also want to ask about their payment schedule and how they prefer to be paid (cash, check, or credit card, for example).
Are there permits or inspections required for chimney replacement, and how much do they cost?
When replacing a chimney, you almost always will need to get a permit and an inspection. The costs will vary depending on where you live, but you might pay up to $500 for an inspection by a structural engineer, and permits can reach $150.
How often should I replace my chimney, and what factors affect its lifespan?
A well-built chimney should last several generations of homeowners. In theory, you may never need to replace your chimney (but regular inspections are a good idea). If you do replace your chimney, you likely won’t need to replace it again as long as you’re in that house.
That said, certain elements may need to be repaired or replaced more frequently. Chimney liners, for instance, last 15 to 20 years, and mortar lasts 25 to 30 years.
Extreme weather, like high and low temperatures, hail, and earthquakes, may shorten a chimney’s lifespan, as can exposure to water. As your home settles over time, it may also lead to premature cracks in your chimney.
What are the risks of not replacing a chimney that is in disrepair?
If you ignore the signs that it’s time to replace or repair your chimney, you’re exposing your home to a lot of risk. Water could more easily get into your home, leading to mold and mildew. Walls, ceilings, and floors could deteriorate over time, and the inner workings of your chimney would be exposed to rust. Eventually, your chimney might collapse, leading to much more expensive and extensive structural damage to your home.
Photo credit: iStock/AntonioSolano SoFi Loan Products SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Before you buy a homeowners policy, your insurer might require a home insurance inspection. This inspection isn’t the same as the one you had when you bought your house. Instead, it’s a way for insurance companies to see the condition of your home, evaluate your coverage needs and decide whether they’re willing to insure you. Keeping your home in good shape can help this process go smoothly and ensure you get the coverage you need.
What is a home insurance inspection?
A home insurance inspection helps insurers understand the risks of covering your house. It allows your insurer to figure out how much it would cost to rebuild your house and to spot any issues, like fire hazards or weak structures, that might lead to insurance claims in the future. This information helps the insurance company decide if your home is in good enough shape to insure, and if so, how much your premium should cost.
Not all homes will undergo these inspections. Your insurer might require an inspection if:
You have a high-value or older home.
You live in an area at risk of tornadoes, hurricanes, wildfires or other hazards.
What can you expect during a home insurance inspection?
You might not need to be present for an exterior inspection, but you will if the inspector is checking the interior of your home for things like wiring, plumbing and safety features. The inspection could take up to a few hours, depending on how detailed it is.
For an external inspection, the inspector may look at things like your roof, windows, doors and chimney. They may also check for hazards like overhanging trees or cracks in the walkways.
An interior inspection may involve examining walls, ceilings and floors for signs of water damage or pests. The inspector may also assess the state of your plumbing, electrical, and heating and cooling systems. They’ll often check safety features like smoke detectors, carbon monoxide detectors and security systems, too.
🤓Nerdy Tip
Your insurer may use your home insurance inspection to verify that you qualify for certain home insurance discounts. For example, many companies offer savings for having a home security system.
How to prepare for a home insurance inspection
Before your home insurance inspection, do your own thorough check to avoid being caught off guard by any problems. (You may want to hire a professional for some of these tasks.)
If you spot any potential issues, fix what you can or reach out to a contractor who can help. Here are a few key places to focus on.
Exterior of the house
Roof: Have a roofer check for damaged or missing shingles.
Gutters: Clear debris and ensure your gutters are secure.
Chimney: Look for cracks or loose bricks; consider a professional cleaning.
Trees: Trim branches away from the house.
Siding, doors and windows: Check for cracks, leaks and damage.
Walkways: Ensure there are no tripping hazards.
Yard: Remove loose debris and get rid of pools of water near your home that could lead to pests.
Interior of the house
Detectors: Ensure smoke and carbon monoxide detectors work.
Fire extinguisher: Check to make sure it’s operational.
Fireplace: Clean it out if you have one.
Windows, walls, doors and plumbing: Check for signs of leaks, cracks and pest issues.
Attic and basement: Look for signs of water or pest damage.
HVAC system: Have a professional clean and test your system.
What if you fail a home insurance inspection?
If your home doesn’t pass the insurance inspection, don’t worry — you have options. Make sure to act quickly. Being uninsured, even for a short time, is risky. A lapse in coverage can make it harder and more expensive to get a policy in the future. And if something happens while you’re not insured, you’ll be financially responsible.
Fix the issues
Your inspector may point out problems like a leaky roof or electrical issues. If your insurance company denies you coverage for fixable reasons like these, address them if you can.
Find a different insurer
If you were denied coverage because you live in an area at high risk for crime or severe weather, ask your neighbors who they use for home insurance. You can also ask the previous homeowners or reach out to a local independent insurance agent.
Not all companies have the same rules. Some insurers are pickier than others about the age of your roof, for instance. So if you can’t afford to get a new roof or make other major repairs, try another company. If one insurer says no, another might say yes.
Dispute the decision
If your insurer drops you due to a failed home insurance inspection and you don’t agree with the decision, you can dispute it. Be prepared to provide evidence to support your case, such as receipts for work you’ve had done on the house or a property assessment from an independent inspector.
You can also file a complaint with your state’s insurance department. It can conduct its own research into your claim and work with your insurance company to resolve the issue.
Look into state-run insurers
Many states have programs to help homeowners who struggle to get insurance. For example, Fair Access to Insurance Requirements (FAIR) plans are designed for high-risk homes that private companies won’t insure. An independent insurance agent can help you find programs like this in your area.